Critical Analysis: Amentum (NYSE:AMTM) and Professional Diversity Network (NASDAQ:IPDN)
by Tristan Rich · The Markets DailyAmentum (NYSE:AMTM – Get Free Report) and Professional Diversity Network (NASDAQ:IPDN – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Institutional & Insider Ownership
39.9% of Amentum shares are owned by institutional investors. Comparatively, 27.8% of Professional Diversity Network shares are owned by institutional investors. 19.4% of Amentum shares are owned by company insiders. Comparatively, 0.4% of Professional Diversity Network shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Amentum and Professional Diversity Network’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% |
| Professional Diversity Network | -143.98% | -76.40% | -54.04% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Amentum and Professional Diversity Network, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amentum | 2 | 6 | 5 | 0 | 2.23 |
| Professional Diversity Network | 1 | 0 | 0 | 0 | 1.00 |
Amentum currently has a consensus price target of $29.00, suggesting a potential upside of 33.49%. Given Amentum’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Amentum is more favorable than Professional Diversity Network.
Earnings and Valuation
This table compares Amentum and Professional Diversity Network”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amentum | $14.39 billion | 0.37 | $66.00 million | $0.83 | 26.17 |
| Professional Diversity Network | $6.55 million | 0.23 | -$6.45 million | ($51.05) | -0.04 |
Amentum has higher revenue and earnings than Professional Diversity Network. Professional Diversity Network is trading at a lower price-to-earnings ratio than Amentum, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Amentum has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.
Summary
Amentum beats Professional Diversity Network on 13 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 Professional Diversity Network
Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites; and contracted software development services. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.