Head-To-Head Review: Forrester Research (NASDAQ:FORR) versus Amentum (NYSE:AMTM)

Amentum (NYSE:AMTM) and Forrester Research (NASDAQ:FORR) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amentum	1.44%	12.19%	5.08%
Forrester Research	-11.17%	6.19%	1.93%

Insider & Institutional Ownership

39.9% of Amentum shares are held by institutional investors. Comparatively, 55.2% of Forrester Research shares are held by institutional investors. 19.4% of Amentum shares are held by insiders. Comparatively, 40.7% of Forrester Research shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Amentum has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Forrester Research has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Amentum and Forrester Research, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	7	5	0	2.31
Forrester Research	1	1	0	0	1.50

Amentum presently has a consensus price target of $29.18, suggesting a potential upside of 46.08%. Given Amentum’s stronger consensus rating and higher probable upside, research analysts clearly believe Amentum is more favorable than Forrester Research.

Valuation and Earnings

This table compares Amentum and Forrester Research”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$14.13 billion	0.35	$66.00 million	$0.83	24.07
Forrester Research	$381.04 million	0.62	-$119.36 million	($2.25)	-5.48

Amentum has higher revenue and earnings than Forrester Research. Forrester Research 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 Forrester Research on 10 of the 14 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 Forrester Research

Forrester Research, Inc. operates as an independent research and advisory company in the United States and internationally. The company operates in three segments: Research, Consulting, and Events. The Research segment primary subscription research services include Forrester Decisions, Forrester Research, and SiriusDecisions Research, which are designed to provide business and technology leaders with a proven path to growth through customer obsession. This segment delivers content, such as future trends, predictions, and market forecasts; deep consumer and business buyer data and insights; curated best practice models and tools to run business functions; operational and performance benchmarking data; and technology and service market landscapes and vendor evaluations. The Consulting segment provides consulting projects, include conducting maturity assessments, prioritizing best practices, developing strategies, building business cases, selecting technology vendors, structuring organizations, developing content marketing strategies and collateral, and sales tools; and advisory services. The Events segment hosts events related to business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights. The company sells its products and services through direct sales force in various locations. Forrester Research, Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.