Parsons (NYSE:PSN – Get Free Report) and Amentum (NYSE:AMTM – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Volatility & Risk
Parsons has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Parsons and Amentum, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Parsons | 2 | 3 | 11 | 0 | 2.56 |
| Amentum | 1 | 7 | 5 | 0 | 2.31 |
Valuation & Earnings
This table compares Parsons and Amentum”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Parsons | $6.29 billion | 0.77 | $241.14 million | $1.45 | 31.28 |
| Amentum | $14.13 billion | 0.35 | $66.00 million | $0.83 | 24.02 |
Parsons has higher earnings, but lower revenue than Amentum. Amentum is trading at a lower price-to-earnings ratio than Parsons, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.0% of Parsons shares are held by institutional investors. Comparatively, 39.9% of Amentum shares are held by institutional investors. 1.3% of Parsons shares are held by insiders. Comparatively, 19.4% of Amentum shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Parsons and Amentum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Parsons | 2.50% | 8.10% | 3.75% |
| Amentum | 1.44% | 12.19% | 5.08% |
Summary
Parsons beats Amentum on 9 of the 14 factors compared between the two stocks.
About Parsons
Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.
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.
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