Contrasting Fluor Co. (NEW) (NYSE:FLR) & Aecom (ACM)

Fluor Co. (NEW) (NYSE: FLR) and Aecom (NYSE:ACM) are both mid-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Fluor Co. (NEW) has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Aecom has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Earnings & Valuation

This table compares Fluor Co. (NEW) and Aecom’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fluor Co. (NEW) $19.04 billion 0.45 $281.40 million $1.43 43.03
Aecom $18.20 billion 0.34 $339.39 million $2.14 18.42

Aecom has lower revenue, but higher earnings than Fluor Co. (NEW). Aecom is trading at a lower price-to-earnings ratio than Fluor Co. (NEW), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fluor Co. (NEW) and Aecom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fluor Co. (NEW) 1.03% 11.69% 4.24%
Aecom 1.86% 12.12% 3.37%

Dividends

Fluor Co. (NEW) pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. Aecom does not pay a dividend. Fluor Co. (NEW) pays out 58.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

84.2% of Fluor Co. (NEW) shares are held by institutional investors. Comparatively, 82.4% of Aecom shares are held by institutional investors. 1.3% of Fluor Co. (NEW) shares are held by insiders. Comparatively, 0.7% of Aecom shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Fluor Co. (NEW) and Aecom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fluor Co. (NEW) 0 6 6 0 2.50
Aecom 1 4 4 0 2.33

Fluor Co. (NEW) presently has a consensus target price of $52.67, indicating a potential downside of 14.40%. Aecom has a consensus target price of $35.11, indicating a potential downside of 10.93%. Given Aecom’s higher probable upside, analysts clearly believe Aecom is more favorable than Fluor Co. (NEW).

Summary

Fluor Co. (NEW) beats Aecom on 9 of the 16 factors compared between the two stocks.

About Fluor Co. (NEW)

Fluor Corporation (Fluor) is a holding company. The Company operates its business in four segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government, and Maintenance, Modification & Asset Integrity (MMAI). The Company, through its subsidiaries, offers professional services providing engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services on a global basis. The Company is an integrated solutions provider for various industries, including oil and gas, chemicals and petrochemicals, mining and metals, transportation, power, life sciences and advanced manufacturing. It is also a service provider to the United States federal Government and governments abroad. It offers services in various categories, including engineering and design, procurement, construction, fabrication, maintenance, modification and asset integrity and project management.

About Aecom

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.

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