Analyzing Chiyoda (OTCMKTS:CHYCY) & Amentum (NYSE:AMTM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chiyoda	16.68%	156.91%	18.14%
Amentum	0.69%	11.56%	4.59%

Volatility and Risk

Chiyoda has a beta of -0.43, suggesting that its share price is 143% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Institutional and Insider Ownership

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Chiyoda and Amentum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiyoda	0	0	0	0	0.00
Amentum	0	7	6	0	2.46

Amentum has a consensus price target of $34.91, suggesting a potential upside of 26.20%. Given Amentum’s stronger consensus rating and higher probable upside, analysts clearly believe Amentum is more favorable than Chiyoda.

Earnings and Valuation

This table compares Chiyoda and Amentum”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiyoda	$3.00 billion	0.60	$178.11 million	$0.63	10.98
Amentum	$14.39 billion	0.47	$66.00 million	$0.40	69.15

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

Summary

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

About Chiyoda

Chiyoda Corporation engages in the integrated engineering business in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.

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.