Core Insights - Amentum Holdings (AMTM) and Sterling Infrastructure (STRL) are both stocks in the Engineering - R and D Services sector that present potential investment opportunities [1] - The Zacks Rank system indicates both companies hold a 2 (Buy) rating, suggesting positive earnings estimate revisions and improving earnings outlooks [3][4] Valuation Metrics - AMTM has a forward P/E ratio of 10.60, while STRL has a forward P/E of 23.70, indicating AMTM may be undervalued compared to STRL [5] - AMTM's PEG ratio is 0.82, suggesting better value relative to its expected earnings growth compared to STRL's PEG ratio of 1.58 [5] - AMTM's P/B ratio is 1.21, significantly lower than STRL's P/B of 7.47, further supporting AMTM's valuation as more favorable [6] Value Grades - Based on the valuation metrics, AMTM has earned a Value grade of A, while STRL has a Value grade of C, indicating AMTM is currently the superior value option [6][7]
AMTM vs. STRL: Which Stock Is the Better Value Option?