AECOM (NYSE:ACM) and Quanta Services (NYSE:PWR) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Valuation and Earnings
This table compares AECOM and Quanta Services' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
AECOM | $13.24 billion | 0.60 | $-186,370,000.00 | $2.15 | 24.97 |
Quanta Services | $12.11 billion | 0.89 | $402.04 million | $3.05 | 25.46 |
Quanta Services has lower revenue, but higher earnings than AECOM. AECOM is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AECOM and Quanta Services' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
AECOM | -1.41% | 9.37% | 2.55% |
Quanta Services | 3.45% | 11.61% | 5.61% |
Insider and Institutional Ownership
88.8% of AECOM shares are owned by institutional investors. Comparatively, 86.5% of Quanta Services shares are owned by institutional investors. 4.9% of AECOM shares are owned by insiders. Comparatively, 1.4% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
AECOM has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for AECOM and Quanta Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
AECOM | 0 | 1 | 7 | 0 | 2.88 |
Quanta Services | 0 | 3 | 8 | 0 | 2.73 |
AECOM presently has a consensus price target of $55.3333, suggesting a potential upside of 3.08%. Quanta Services has a consensus price target of $65.6364, suggesting a potential downside of 15.48%. Given AECOM's stronger consensus rating and higher possible upside, research analysts plainly believe AECOM is more favorable than Quanta Services.
Summary
Quanta Services beats AECOM on 8 of the 14 factors compared between the two stocks.