AECOM (NYSE: ACM) and Aegion Corp (NASDAQ:AEGN) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
Volatility & Risk
AECOM has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Aegion Corp has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for AECOM and Aegion Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AECOM presently has a consensus target price of $38.89, indicating a potential upside of 8.66%. Aegion Corp has a consensus target price of $25.17, indicating a potential upside of 10.67%. Given Aegion Corp’s higher probable upside, analysts clearly believe Aegion Corp is more favorable than AECOM.
Earnings & Valuation
This table compares AECOM and Aegion Corp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AECOM||$17.67 billion||0.32||$790.46 million||$1.64||21.82|
|Aegion Corp||$1.31 billion||0.55||$127.37 million||$1.36||16.72|
AECOM has higher revenue and earnings than Aegion Corp. Aegion Corp is trading at a lower price-to-earnings ratio than AECOM, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
82.1% of AECOM shares are held by institutional investors. Comparatively, 88.9% of Aegion Corp shares are held by institutional investors. 1.1% of AECOM shares are held by company insiders. Comparatively, 3.6% of Aegion Corp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares AECOM and Aegion Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AECOM is engaged in designing, building, financing and operating infrastructure assets for governments, businesses and organizations. The Company’s segments include design and consulting services (DCS), construction services (CS) and management services (MS). Its DCS segment is engaged in planning, consulting, architectural and engineering design services to commercial and government clients in major end markets, such as transportation, facilities, environmental, energy, water and government. Its CS segment is engaged in construction services, including building construction and energy, infrastructure and industrial construction, primarily in the Americas. Its MS segment is engaged in programming and facilitating management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services, primarily for agencies of the United States government and other national governments.
About Aegion Corp
Aegion Corporation (Aegion) is engaged in providing infrastructure protection and maintenance. The Company operates through three segments: Infrastructure Solutions, Corrosion Protection and Energy Services. The Company offers service solutions, including rehabilitation of water and wastewater pipelines with Insituform cured-in-place pipe (CIPP) products; fusible polyvinyl chloride products for rehabilitation; fiber reinforced polymer systems for rehabilitation and strengthening; cathodic protection for corrosion engineering control and infrastructure rehabilitation; pipe coatings for corrosion control and prevention; high density polyethylene (HDPE) pipe lining for corrosion control, abrasion protection and pipeline rehabilitation, and construction and maintenance of oil and gas facilities. The Company’s Insituform CIPP Process for the rehabilitation of sewers, pipelines and other conduits utilizes a custom-manufactured tube, or liner, made of synthetic fiber.
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