Aecom (NYSE:ACM) and ENGlobal (NASDAQ:ENG) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
This table compares Aecom and ENGlobal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
87.8% of Aecom shares are owned by institutional investors. Comparatively, 13.9% of ENGlobal shares are owned by institutional investors. 0.7% of Aecom shares are owned by insiders. Comparatively, 37.7% of ENGlobal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Aecom has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, ENGlobal has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Valuation & Earnings
This table compares Aecom and ENGlobal’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aecom||$20.16 billion||0.24||$136.46 million||$2.68||11.75|
|ENGlobal||$55.76 million||0.42||-$16.25 million||N/A||N/A|
Aecom has higher revenue and earnings than ENGlobal.
This is a summary of recent ratings and price targets for Aecom and ENGlobal, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aecom presently has a consensus price target of $36.71, indicating a potential upside of 16.55%. Given Aecom’s higher possible upside, research analysts clearly believe Aecom is more favorable than ENGlobal.
Aecom beats ENGlobal on 9 of the 11 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.
ENGlobal Company Profile
ENGlobal Corporation provides engineering and professional services primarily to the energy industry in the United States and internationally. The company operates through two segments, Engineering, Procurement and Construction Management (EPCM); and Automation. The EPCM segment offers services relating to the development, management, and execution of projects requiring professional engineering and related project management services primarily to the energy industry, which include conceptual studies, project definition, cost estimating, engineering design, environmental compliance, material procurement, project management, and construction management. The Automation segment provides services related to the design, fabrication, and implementation of process distributed control and analyzer systems, advanced automated data gathering systems, information technology, and electrical projects; and designs, assembles, integrates, and services control and instrumentation systems for applications in the energy and processing related industries. It serves petroleum refining, petrochemical, pipeline, production, process, and pulp and paper industries. In addition, this segment offers electrical and instrument installation, technical, maintenance and calibration, and repair services to government agencies, refineries, and petrochemical and process industries. ENGlobal Corporation was founded in 1985 and is headquartered in Houston, Texas.
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