Analyzing Amentum (NYSE:AMTM) and Mayville Engineering (NYSE:MEC)

Amentum (NYSE:AMTM) and Mayville Engineering (NYSE:MEC) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Earnings and Valuation

This table compares Amentum and Mayville Engineering”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$8.39 billion	0.72	-$82.00 million	$0.39	63.88
Mayville Engineering	$524.61 million	0.56	$25.97 million	$0.85	17.04

Mayville Engineering has lower revenue, but higher earnings than Amentum. Mayville Engineering is trading at a lower price-to-earnings ratio than Amentum, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amentum and Mayville Engineering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amentum	0.41%	10.90%	4.18%
Mayville Engineering	3.41%	8.21%	4.52%

Analyst Recommendations

This is a summary of current ratings and target prices for Amentum and Mayville Engineering, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	4	5	0	2.40
Mayville Engineering	0	0	3	1	3.25

Amentum presently has a consensus target price of $27.30, suggesting a potential upside of 9.57%. Mayville Engineering has a consensus target price of $20.6667, suggesting a potential upside of 42.65%. Given Mayville Engineering’s stronger consensus rating and higher probable upside, analysts clearly believe Mayville Engineering is more favorable than Amentum.

Insider and Institutional Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 45.4% of Mayville Engineering shares are owned by institutional investors. 18.7% of Amentum shares are owned by insiders. Comparatively, 7.2% of Mayville Engineering shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Mayville Engineering beats Amentum on 8 of the 14 factors compared between the two stocks.

About Amentum

Amentum Holdings, Inc. provides engineering and technology solutions to address challenges in science, security, and sustainability. It serves various markets, such as energy and environment, space, intelligence, defense, civilian, commercial, and international markets. The company was incorporated in 2010 and is headquatered in Chantilly, Virginia.

About Mayville Engineering

Mayville Engineering Company, Inc., together with its subsidiaries, engages in the production, design, prototyping and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components in the United States. It also supplies engineered components to original equipment manufacturers. The company serves heavy and medium duty commercial vehicles, construction and access equipment, powersports, agriculture, military, and other end markets. Mayville Engineering Company, Inc. was founded in 1945 and is headquartered in Milwaukee, Wisconsin.