Contrasting Stantec (NYSE:STN) and Its Competitors

Stantec (NYSE: STN) is one of 48 public companies in the “Construction & Engineering” industry, but how does it contrast to its competitors? We will compare Stantec to related businesses based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, dividends and risk.

Dividends

Stantec pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Stantec pays out 51.3% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 1.5% and pay out 125.5% of their earnings in the form of a dividend. Stantec has raised its dividend for 4 consecutive years.

Valuation & Earnings

This table compares Stantec and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Stantec $2.84 billion $305.54 million 36.99
Stantec Competitors $3.12 billion $137.70 million 19.59

Stantec’s competitors have higher revenue, but lower earnings than Stantec. Stantec is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Stantec and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stantec 2.31% 10.67% 4.95%
Stantec Competitors 1.90% -27.89% 2.21%

Institutional and Insider Ownership

57.2% of Stantec shares are owned by institutional investors. Comparatively, 79.0% of shares of all “Construction & Engineering” companies are owned by institutional investors. 11.1% of shares of all “Construction & Engineering” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Stantec has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Stantec’s competitors have a beta of 1.27, suggesting that their average stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Stantec and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stantec 0 3 2 0 2.40
Stantec Competitors 158 907 1564 18 2.54

Stantec presently has a consensus target price of $33.75, suggesting a potential upside of 16.98%. As a group, “Construction & Engineering” companies have a potential upside of 22.24%. Given Stantec’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Stantec has less favorable growth aspects than its competitors.

Summary

Stantec competitors beat Stantec on 8 of the 15 factors compared.

Stantec Company Profile

Stantec Inc. is a provider of professional services in the area of infrastructure and facilities for clients in the public and private sectors. The Company’s operates through four segments Consulting Services-Canada, Consulting Services-United States, Consulting Services-Global and Construction Services. The Company’s services include engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, construction services, project management, and project economics, from initial project concept and planning through to design, construction, commissioning, maintenance, decommissioning and remediation. The Company provides professional consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management and project economics in the area of infrastructure and facilities, principally under fee-for-service agreements with clients.

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