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AME vs PSN
Which Stock Would AI Choose? AMETEK (AME) vs. Parsons (PSN) Stock Comparison
Key Takeaways
- AME (AMETEK) delivered record full-year 2025 results with $7.4 billion in sales and a 9% increase in adjusted earnings per share (EPS), underscoring consistent execution across its industrial technology portfolio.
- PSN (Parsons Corporation) posted record adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and margin expansion in 2025, driven by its Critical Infrastructure segment, even as headline revenue faced headwinds from a confidential contract wind-down.
- AME operates with substantially higher operating margins (approximately 26%) compared to PSN (approximately 9.6%), reflecting fundamentally different business models — one centered on niche industrial manufacturing and the other on government services and infrastructure projects.
- PSN maintains a trailing twelve-month book-to-bill ratio of 1.0x or better in every quarter since its initial public offering (IPO), supported by an $8.7 billion backlog and major contract wins in defense and infrastructure.
- Both stocks benefit from exposure to aerospace and defense tailwinds, but AME has shown stronger recent stock momentum, while PSN trades at a significantly lower valuation multiple with notable analyst upside expectations.
- Investors comparing these two names are effectively choosing between a premium-priced industrial compounder (AME) and a discounted government services and infrastructure play with high free cash flow conversion (PSN).
Introduction
Comparing AME (AMETEK, Inc.) and PSN (Parsons Corporation) brings two distinctly different business models into the same analytical frame — one a diversified industrial technology manufacturer, the other a global provider of technology-driven solutions to government and infrastructure markets. While both companies generate meaningful revenue from defense-adjacent end markets, their growth drivers, margin profiles, and risk factors diverge considerably. This stock comparison is relevant for investors weighing high-margin industrial consistency against infrastructure and national security exposure at a value-oriented price point. Understanding the relative performance, momentum, and market positioning of each can help clarify which profile aligns with current market conditions.
AME Overview and Recent Performance
AME, or AMETEK, Inc., is a global manufacturer of electronic instruments and electromechanical devices headquartered in Berwyn, Pennsylvania. The company operates through two primary segments: the Electronic Instruments Group (EIG), which produces analytical, testing, and measurement equipment, and the Electromechanical Group (EMG), which supplies motors, actuators, and motion control systems. AMETEK serves niche markets across aerospace, defense, healthcare, energy, and industrial automation. In recent weeks, the stock has exhibited strong momentum, with reports indicating a 10.7% gain over a 30-day window and positive year-to-date movement exceeding 11%. The company's 2025 full-year results set records for sales ($7.4 billion, up 7%), operating income, EBITDA, and adjusted EPS ($7.43, up 9%). The recently concluded Q1 2026 delivered double-digit sales growth to $1.93 billion and EPS of $1.97, further extending the company's record-setting trajectory. The announcement of the Indicor Instrumentation acquisition — a portfolio of 10 industrial technology businesses — has reinforced the market's confidence in AMETEK's acquisition-led growth strategy. With free cash flow conversion at 113% of net income and a record backlog of $3.58 billion, the company enters the remainder of 2026 with considerable momentum.
PSN Overview and Recent Performance
PSN, or Parsons Corporation, is a Chantilly, Virginia-based technology company delivering solutions across two segments: Federal Solutions and Critical Infrastructure. The company serves six end markets — including cyber and electronic warfare, space and missile defense, critical infrastructure protection, transportation, urban development, and environmental remediation. Parsons has maintained a trailing twelve-month book-to-bill ratio of 1.0x or greater in every quarter since its 2019 IPO, a notable measure of sustained demand. For fiscal year 2025, headline revenue came in at $6.4 billion, down 6% year-over-year, though excluding a confidential contract, total revenue grew 12% and organic revenue grew 8%. The company posted record adjusted EBITDA of $609 million with margins expanding 60 basis points to 9.6%. The Critical Infrastructure segment was a standout, with revenue up 15% and adjusted EBITDA surging 73% for the full year, reflecting the ramp-up of recent contract wins and accretive acquisitions. In recent market activity, Parsons secured major contract extensions, including a $593 million FAA Technical Support Services contract and a sole-source national security contract with a ceiling of up to $500 million. The total backlog stands at $8.7 billion, 72% of which is funded — the highest proportion since the IPO.
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Head-to-Head Comparison
The most striking contrast between AME and PSN lies in their business models and margin profiles. AMETEK is a manufacturing company at its core, producing tangible instrumentation and electromechanical products with operating margins consistently above 26%. Parsons, by contrast, operates as a services and solutions provider — its adjusted EBITDA margins of 9.6%, while at a record, reflect the structurally lower margins inherent in government contracting and infrastructure project management.
On the growth front, both companies are performing well when adjusted for one-time items. AMETEK's organic growth, supplemented by a disciplined acquisition strategy (the "AMETEK Growth Model"), has delivered consistent mid-to-high single-digit top-line expansion. Parsons, excluding the confidential contract wind-down, delivered 12% total revenue growth in 2025, with the Critical Infrastructure segment expanding at a particularly strong pace.
Risk profiles differ meaningfully. AMETEK faces integration risk from its acquisitive strategy and exposure to industrial cyclicality, although its niche positioning and diversified end markets provide a buffer. Parsons faces concentration risk via government budget cycles and the ongoing impact of its confidential contract transition, which has masked otherwise robust underlying growth. Additionally, PSN's Federal Solutions segment margins have compressed due to investments in bid and proposal activity and contract mix shifts.
From a valuation standpoint, AME trades at a premium price-to-earnings multiple (approximately 30.6x based on recent data), reflecting its track record of consistent compound growth and high margins. PSN has traded at a significantly lower multiple, with analysts at Citigroup and Baird initiating or maintaining Buy and Outperform ratings respectively, citing potential upside. The average analyst price target for PSN has implied over 40% upside from recent trading levels, while AME's valuation leaves less room for multiple expansion.
Tickeron AI Verdict
Based on observable market data and relative positioning, Tickeron's AI-driven analysis would likely tilt in favor of AME in the current environment, though with important caveats. The AI would recognize AMETEK's stronger trend consistency — record results across multiple quarters, expanding core margins, a record backlog, and positive recent price momentum — as signals aligned with trend-following strategies. The company's proven "Growth Model," combining organic expansion with accretive M&A (mergers and acquisitions), provides a repeatable formula that quantitative models tend to favor. That said, the AI would also note that PSN offers a compelling value case — trading at a discount with high free cash flow conversion, a funded backlog near all-time highs, and multiple contract catalysts that could re-rate the stock. In probabilistic terms, AME currently exhibits the steadier and more predictable trend profile, while PSN presents a higher-risk, higher-potential-reward scenario that may appeal to contrarian or value-oriented AI strategies depending on market regime classification.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AME is a Hold and PSN is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AME’s FA Score shows that 3 FA rating(s) are green whilePSN’s FA Score has 0 green FA rating(s).
- AME’s FA Score: 3 green, 2 red.
- PSN’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AME’s TA Score shows that 4 TA indicator(s) are bullish while PSN’s TA Score has 5 bullish TA indicator(s).
- AME’s TA Score: 4 bullish, 3 bearish.
- PSN’s TA Score: 5 bullish, 5 bearish.
Price Growth
AME (@Industrial Machinery) experienced а -0.11% price change this week, while PSN (@Information Technology Services) price change was -24.72% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -1.07%. For the same industry, the average monthly price growth was -11.16%, and the average quarterly price growth was -5.53%.
The average weekly price growth across all stocks in the @Information Technology Services industry was +6.07%. For the same industry, the average monthly price growth was +0.18%, and the average quarterly price growth was +37.66%.
Reported Earning Dates
AME is expected to report earnings on Aug 04, 2026.
PSN is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Industrial Machinery (-1.07% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
@Information Technology Services (+6.07% weekly)The industry, whose total market cap runs into trillions, makes hardware/software that allows data to be stored, retrieved, transmitted, and manipulated on computers. With the ever-increasing relevance of data, the information technology (IT) industry has gained momentous growth over the years, and continues to thrive on innovation. Some of the behemoths in the industry are International Business Machines Corporation, Accenture, and VMware, Inc.
| AME | PSN | AME / PSN | |
| Capitalization | 55.4B | 4.72B | 1,173% |
| EBITDA | 2.36B | 470M | 503% |
| Gain YTD | 18.093 | -28.463 | -64% |
| P/E Ratio | 36.51 | 30.49 | 120% |
| Revenue | 7.6B | 6.29B | 121% |
| Total Cash | N/A | 266M | - |
| Total Debt | 2.18B | 1.64B | 133% |
AME | PSN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 14 | 14 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 75 Overvalued | 90 Overvalued | |
PROFIT vs RISK RATING 1..100 | 16 | 94 | |
SMR RATING 1..100 | 59 | 83 | |
PRICE GROWTH RATING 1..100 | 32 | 80 | |
P/E GROWTH RATING 1..100 | 29 | 54 | |
SEASONALITY SCORE 1..100 | 55 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
AME's Valuation (75) in the Miscellaneous Manufacturing industry is in the same range as PSN (90) in the Information Technology Services industry. This means that AME’s stock grew similarly to PSN’s over the last 12 months.
AME's Profit vs Risk Rating (16) in the Miscellaneous Manufacturing industry is significantly better than the same rating for PSN (94) in the Information Technology Services industry. This means that AME’s stock grew significantly faster than PSN’s over the last 12 months.
AME's SMR Rating (59) in the Miscellaneous Manufacturing industry is in the same range as PSN (83) in the Information Technology Services industry. This means that AME’s stock grew similarly to PSN’s over the last 12 months.
AME's Price Growth Rating (32) in the Miscellaneous Manufacturing industry is somewhat better than the same rating for PSN (80) in the Information Technology Services industry. This means that AME’s stock grew somewhat faster than PSN’s over the last 12 months.
AME's P/E Growth Rating (29) in the Miscellaneous Manufacturing industry is in the same range as PSN (54) in the Information Technology Services industry. This means that AME’s stock grew similarly to PSN’s over the last 12 months.
| AME | PSN | |
|---|---|---|
| RSI ODDS (%) | N/A | 3 days ago 83% |
| Stochastic ODDS (%) | 3 days ago 40% | 3 days ago 69% |
| Momentum ODDS (%) | 3 days ago 48% | 3 days ago 56% |
| MACD ODDS (%) | 3 days ago 60% | 3 days ago 63% |
| TrendWeek ODDS (%) | 3 days ago 46% | 3 days ago 59% |
| TrendMonth ODDS (%) | 3 days ago 46% | 3 days ago 60% |
| Advances ODDS (%) | 3 days ago 49% | 3 days ago 64% |
| Declines ODDS (%) | 5 days ago 46% | 13 days ago 60% |
| BollingerBands ODDS (%) | 3 days ago 28% | 3 days ago 75% |
| Aroon ODDS (%) | 3 days ago 48% | 3 days ago 61% |
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