Head-To-Head Review: Exponent (NASDAQ:EXPO) and Jacobs Solutions (NYSE:J)

Exponent (NASDAQ:EXPO) and Jacobs Solutions (NYSE:J) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Exponent and Jacobs Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exponent	$632.46 million	5.24	$106.01 million	$2.23	30.61
Jacobs Solutions	$13.17 billion	1.24	$289.34 million	$3.22	43.08

Jacobs Solutions has higher revenue and earnings than Exponent. Exponent is trading at a lower price-to-earnings ratio than Jacobs Solutions, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Exponent has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Jacobs Solutions has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Exponent and Jacobs Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exponent	0	2	2	0	2.50
Jacobs Solutions	0	6	6	0	2.50

Exponent presently has a consensus price target of $81.00, indicating a potential upside of 18.65%. Jacobs Solutions has a consensus price target of $153.30, indicating a potential upside of 10.51%. Given Exponent’s higher possible upside, research analysts plainly believe Exponent is more favorable than Jacobs Solutions.

Institutional and Insider Ownership

92.4% of Exponent shares are held by institutional investors. Comparatively, 85.7% of Jacobs Solutions shares are held by institutional investors. 1.6% of Exponent shares are held by company insiders. Comparatively, 0.5% of Jacobs Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Exponent pays an annual dividend of $1.24 per share and has a dividend yield of 1.8%. Jacobs Solutions pays an annual dividend of $1.44 per share and has a dividend yield of 1.0%. Exponent pays out 55.6% of its earnings in the form of a dividend. Jacobs Solutions pays out 44.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Exponent has increased its dividend for 12 consecutive years and Jacobs Solutions has increased its dividend for 4 consecutive years. Exponent is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Exponent and Jacobs Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exponent	17.67%	31.48%	15.53%
Jacobs Solutions	2.92%	22.29%	6.85%

Summary

Exponent beats Jacobs Solutions on 10 of the 16 factors compared between the two stocks.

About Exponent

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company in the United States and internationally. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering and sciences, buildings and structures, civil engineering, construction consulting, data sciences, electrical engineering and computer science, human factors, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, thermal sciences, and vehicle engineering. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. The company offers approximately 90 technical disciplines to solve pressing and complicated challenges facing stakeholders. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors of the economy. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. The company was founded in 1967 and is headquartered in Menlo Park, California.

About Jacobs Solutions

Jacobs Solutions Inc. provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. It operates through Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting segments. The company offers cyber, data analytics, systems and software application integration and consulting, enterprise level and mission IT, design, nuclear, and enterprise level operations and maintenance services; software development, testing, mission integration, program management, research, development, test, evaluation services, training, and environmental remediation services; and other technical consulting solutions, as well as construction and construction management services. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport industries. The company was founded in 1947 and is headquartered in Dallas, Texas.