Analyzing SS&C Technologies (NASDAQ:SSNC) and Amentum (NYSE:AMTM)

SS&C Technologies (NASDAQ:SSNC) and Amentum (NYSE:AMTM) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Profitability

This table compares SS&C Technologies and Amentum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SS&C Technologies	13.16%	21.20%	7.19%
Amentum	1.44%	12.19%	5.08%

Institutional & Insider Ownership

96.9% of SS&C Technologies shares are owned by institutional investors. Comparatively, 39.9% of Amentum shares are owned by institutional investors. 16.0% of SS&C Technologies shares are owned by company insiders. Comparatively, 19.4% of Amentum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares SS&C Technologies and Amentum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SS&C Technologies	$6.27 billion	3.11	$796.90 million	$3.48	23.85
Amentum	$14.39 billion	0.36	$66.00 million	$0.83	25.86

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

Analyst Ratings

This is a summary of current ratings and target prices for SS&C Technologies and Amentum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SS&C Technologies	0	3	5	1	2.78
Amentum	1	7	5	0	2.31

SS&C Technologies currently has a consensus target price of $91.25, suggesting a potential upside of 9.94%. Amentum has a consensus target price of $29.18, suggesting a potential upside of 35.98%. Given Amentum’s higher probable upside, analysts clearly believe Amentum is more favorable than SS&C Technologies.

Volatility & Risk

SS&C Technologies has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Amentum has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Summary

SS&C Technologies beats Amentum on 10 of the 14 factors compared between the two stocks.

About SS&C Technologies

SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions to the financial services and healthcare industries. It operates through the following geographical segments: United States, Europe, Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas, excluding the United States and Canada. Its products include advent genesis, antares, asset allocators, AWD, axys, BANC mall, BRIX, DST vision, evare, lightning, and moxy. The company was founded by William Charles Stone in March 1986 and is headquartered in Windsor, CT.

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.