Arcadis (OTCMKTS:ARCAY) and Tetra Tech (NASDAQ:TTEK) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Insider and Institutional Ownership
84.6% of Tetra Tech shares are held by institutional investors. 1.0% of Arcadis shares are held by company insiders. Comparatively, 3.4% of Tetra Tech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Arcadis pays an annual dividend of $0.48 per share and has a dividend yield of 3.9%. Tetra Tech pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Tetra Tech pays out 18.2% of its earnings in the form of a dividend. Tetra Tech has raised its dividend for 3 consecutive years.
Volatility & Risk
Arcadis has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Tetra Tech has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
This table compares Arcadis and Tetra Tech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Arcadis and Tetra Tech, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tetra Tech has a consensus price target of $70.17, indicating a potential upside of 25.48%. Given Tetra Tech’s higher probable upside, analysts clearly believe Tetra Tech is more favorable than Arcadis.
Valuation and Earnings
This table compares Arcadis and Tetra Tech’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arcadis||$3.64 billion||0.29||$80.02 million||N/A||N/A|
|Tetra Tech||$2.96 billion||1.04||$136.88 million||$2.64||21.18|
Tetra Tech has lower revenue, but higher earnings than Arcadis.
Tetra Tech beats Arcadis on 11 of the 14 factors compared between the two stocks.
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.
Tetra Tech Company Profile
Tetra Tech, Inc. provides consulting and engineering services worldwide. It operates through two segments, Water, Environment and Infrastructure (WEI); and Resource Management and Energy (RME). The WEI segment offers early data collection and monitoring, data analysis and information technology, science and engineering applied research, engineering design, construction management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services. It serves governments, and commercial and industrial clients in water resources analysis and water management, environmental restoration, government consulting, and civil infrastructure master planning and engineering design markets. The RME segment provides early data collection and monitoring, data analysis and information technology, feasibility studies and assessments, science and engineering applied research, engineering design, construction management, and operations and maintenance services. This segment serves industrial and commercial clients, U.S. federal agencies in large scale remediation, and international development agencies in natural resources, energy, remediation, waste management, utilities, and international development markets. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California.
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