Aecom (NYSE:ACM) and Arcadis (OTCMKTS:ARCAY) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Arcadis pays an annual dividend of $0.48 per share and has a dividend yield of 3.3%. Aecom does not pay a dividend.
This is a breakdown of recent recommendations and price targets for Aecom and Arcadis, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aecom presently has a consensus price target of $35.50, indicating a potential upside of 8.50%. Given Aecom’s higher probable upside, equities analysts clearly believe Aecom is more favorable than Arcadis.
Risk & Volatility
Aecom has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Arcadis has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Valuation & Earnings
This table compares Aecom and Arcadis’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aecom||$18.20 billion||0.29||$339.39 million||$2.94||11.13|
|Arcadis||$3.64 billion||0.35||$80.02 million||N/A||N/A|
Aecom has higher revenue and earnings than Arcadis.
This table compares Aecom and Arcadis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
84.3% of Aecom shares are owned by institutional investors. 0.7% of Aecom shares are owned by insiders. Comparatively, 1.0% of Arcadis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Aecom beats Arcadis on 9 of the 12 factors compared between the two stocks.
Aecom Company Profile
AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The company operates through four segments: Design and Consulting Services (DCS), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP). The DCS segment provides planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, such as transportation, facilities, environmental, and energy/power markets. The CS segment offers building construction and energy, as well as infrastructure and industrial construction services. The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services primarily for agencies of the U.S. government and other national governments. The ACAP segment invests in and develops real estate, public-private partnership (P3), and infrastructure projects. AECOM has a strategic alliance with Arrow Electronics, Inc. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was founded in 1980 and is headquartered in Los Angeles, California.
Arcadis Company Profile
Arcadis NV operates as a design and consultancy firm for natural and built assets worldwide. The company operates through Europe & Middle East, the Americas, Asia Pacific, and CallisonRTKL segments. It offers design, consultancy, engineering, project, and management services for various sectors. The company provides architectural design, landscape architecture, and performance driven architecture services; business advisory services for asset strategy and performance, business transformation and resiliency, investment and finance, and technology and information; and construction management and site supervision, cost management, program management, and project management services. It also offers contract solutions for claims preparation and defense, dispute avoidance and resolution, expert witness, and strategic procurement and contract advice; cost and commercial management, strategic procurement and contract strategy, and whole lifecycle costing services; civil and structural engineering, asset management, electrical engineering, building information modelling, mechanical engineering, and tunneling and underground infrastructure services; and environmental solutions, such as site evaluation and restoration, strategic environmental consulting, environmental construction, and environmental planning services. In addition, the company provides sustainable urban development, transportation planning, and urban planning services; and water supply and treatment, water management, and industrial water treatment services. It serves natural resources, power, retail, transportation, water and utilities, public, and other industrial sectors, as well as cities, commercial developers, contractors, and financial institutions. The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997. Arcadis NV was founded in 1888 and is headquartered in Amsterdam, the Netherlands.
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