KBR (NYSE:KBR) vs. Amentum (NYSE:AMTM) Financial Analysis

KBR (NYSE:KBR) and Amentum (NYSE:AMTM) are both mid-cap construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for KBR and Amentum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBR	0	5	4	0	2.44
Amentum	1	4	5	0	2.40

KBR presently has a consensus price target of $62.78, suggesting a potential upside of 22.61%. Amentum has a consensus price target of $27.30, suggesting a potential upside of 8.66%. Given KBR’s stronger consensus rating and higher possible upside, analysts clearly believe KBR is more favorable than Amentum.

Earnings and Valuation

This table compares KBR and Amentum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KBR	$7.74 billion	0.85	$375.00 million	$2.76	18.55
Amentum	$12.68 billion	0.48	-$82.00 million	$0.39	64.42

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

Insider and Institutional Ownership

97.0% of KBR shares are owned by institutional investors. Comparatively, 39.9% of Amentum shares are owned by institutional investors. 1.1% of KBR shares are owned by company insiders. Comparatively, 18.7% of Amentum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KBR	4.52%	33.65%	7.33%
Amentum	0.41%	10.90%	4.18%

Summary

KBR beats Amentum on 9 of the 13 factors compared between the two stocks.

About KBR

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to the defense, renewable energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. This segment also provides synergistic services, including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions; high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization; and digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.

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.