Comparing Foster Wheeler (FWLT) and Aecom (ACM)

Foster Wheeler (NASDAQ: FWLT) and Aecom (NYSE:ACM) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

81.5% of Aecom shares are held by institutional investors. 0.7% of Aecom shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Foster Wheeler and Aecom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foster Wheeler N/A N/A N/A
Aecom 2.15% 11.74% 3.36%

Analyst Ratings

This is a summary of current recommendations for Foster Wheeler and Aecom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foster Wheeler 0 0 0 0 N/A
Aecom 1 4 4 0 2.33

Aecom has a consensus target price of $40.00, suggesting a potential upside of 14.48%.

Earnings and Valuation

This table compares Foster Wheeler and Aecom’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Foster Wheeler N/A N/A N/A $0.90 N/A
Aecom $18.20 billion 0.31 $339.39 million $2.53 13.81

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

Summary

Aecom beats Foster Wheeler on 8 of the 8 factors compared between the two stocks.

About Foster Wheeler

Foster Wheeler AG (Foster Wheeler) is a supplier of engineering, construction and project management contractor and power equipment. It operates through two business groups: Global Engineering and Construction Group (Global E&C Group), and Global Power Group. Its Global E&C Group, which operates worldwide, designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure. Its Global Power Group designs, manufactures and erects steam generators and auxiliary equipment for electric power generating stations, district heating and power plants and industrial facilities worldwide.In May 2014, the Company announced that a subsidiary of its Global Power Group acquired Siemens Environmental Systems and Services business.

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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