Head-To-Head Analysis: Amentum (NYSE:AMTM) and Alibaba Group (NYSE:BABA)

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

Profitability

This table compares Amentum and Alibaba 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
Alibaba Group	8.98%	12.28%	7.44%

Analyst Ratings

This is a summary of recent ratings for Amentum and Alibaba Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	0	1	2	0	2.67
Alibaba Group	0	2	13	0	2.87

Amentum currently has a consensus target price of $28.33, suggesting a potential upside of 31.20%. Alibaba Group has a consensus target price of $115.13, suggesting a potential upside of 29.17%. Given Amentum’s higher possible upside, analysts plainly believe Amentum is more favorable than Alibaba Group.

Insider and Institutional Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 13.5% of Alibaba Group shares are owned by institutional investors. 12.5% of Alibaba Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Amentum and Alibaba Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$8.39 billion	0.63	-$82.00 million	N/A	N/A
Alibaba Group	$130.35 billion	1.63	$11.08 billion	$4.93	18.08

Alibaba Group has higher revenue and earnings than Amentum.

Summary

Alibaba Group beats Amentum on 9 of the 11 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 Alibaba Group

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao, a digital retail platform; Tmall, a third-party online and mobile commerce platform; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.