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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alibaba Group	$130.35 billion	1.58	$11.08 billion	$4.93	17.54
Amentum	$8.39 billion	0.67	-$82.00 million	N/A	N/A

Alibaba Group has higher revenue and earnings than Amentum.

Insider and Institutional Ownership

13.5% of Alibaba Group shares are owned by institutional investors. Comparatively, 39.9% of Amentum shares are owned by institutional investors. 12.5% of Alibaba Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Alibaba Group and Amentum, as reported by MarketBeat.

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

Alibaba Group currently has a consensus price target of $115.13, suggesting a potential upside of 33.12%. Amentum has a consensus price target of $28.33, suggesting a potential upside of 22.44%. Given Alibaba Group’s stronger consensus rating and higher probable upside, analysts clearly believe Alibaba Group is more favorable than Amentum.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alibaba Group	8.98%	12.28%	7.44%
Amentum	N/A	N/A	N/A

Summary

Alibaba Group beats Amentum on 10 of the 11 factors compared between the two stocks.

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.

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.