Critical Review: DHI Group (NYSE:DHX) versus Amentum (NYSE:AMTM)

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Amentum and DHI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	0	0	2	0	3.00
DHI Group	0	0	2	0	3.00

Amentum currently has a consensus target price of $30.50, suggesting a potential upside of 48.93%. DHI Group has a consensus target price of $5.25, suggesting a potential upside of 191.67%. Given DHI Group’s higher possible upside, analysts clearly believe DHI Group is more favorable than Amentum.

Institutional & Insider Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 69.3% of DHI Group shares are owned by institutional investors. 15.8% of DHI Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$8.39 billion	0.59	N/A	N/A	N/A
DHI Group	$144.43 million	0.60	$3.49 million	$0.04	45.00

DHI Group has lower revenue, but higher earnings than Amentum.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amentum	N/A	N/A	N/A
DHI Group	0.95%	7.87%	3.80%

Summary

DHI Group beats Amentum on 7 of the 8 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 DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.