Analyzing Aecom (ACM) and Babcock Intl Group (BCKIY)

Aecom (NYSE: ACM) and Babcock Intl Group (OTCMKTS:BCKIY) are both mid-cap construction companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

84.0% of Aecom shares are held by institutional investors. 0.7% of Aecom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Aecom has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Babcock Intl Group has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.


This table compares Aecom and Babcock Intl Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aecom 2.15% 11.74% 3.36%
Babcock Intl Group N/A N/A N/A

Earnings & Valuation

This table compares Aecom and Babcock Intl Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aecom $18.20 billion 0.32 $339.39 million $2.53 14.49
Babcock Intl Group $6.17 billion 0.80 $407.61 million N/A N/A

Babcock Intl Group has lower revenue, but higher earnings than Aecom.

Analyst Recommendations

This is a summary of current recommendations and price targets for Aecom and Babcock Intl Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aecom 1 4 4 0 2.33
Babcock Intl Group 0 0 0 0 N/A

Aecom currently has a consensus price target of $40.00, indicating a potential upside of 9.11%. Given Aecom’s higher probable upside, research analysts clearly believe Aecom is more favorable than Babcock Intl Group.


Babcock Intl Group pays an annual dividend of $0.33 per share and has a dividend yield of 3.4%. Aecom does not pay a dividend.


Aecom beats Babcock Intl Group on 9 of the 12 factors compared between the two stocks.

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.

About Babcock Intl Group

Babcock International Group PLC, together with its subsidiaries, provides engineering support services for defense, marine, aviation, and nuclear sectors. It operates through Marine and Technology, Defence and Security, Support Services, and International divisions. The company delivers through-life marine engineering services ranging from supporting naval fleets, commercial marine, engineering consultancy, weapons handling, equipment support, intelligence and cyber-security, and technical training to defense and civil customers. It also provides fleet management and training for customer-owned defense, emergency services, and global airport and commercial vehicle fleets, as well as engineering services and technical training for customers. In addition, the company delivers engineering services to defense and civil customers, including technical training of fixed and rotary wing pilots, engineering, equipment support and maintenance, and airbase management and logistics to the operation of owned and customer-owned aviation fleets, as well as emergency and offshore services. Further, it offers nuclear engineering on nuclear decommissioning programs and projects; and nuclear engineering services in training, operation support, new-build program management, design and installation, and critical safety to public and private customers. Babcock International Group PLC was founded in 1891 and is headquartered in London, the United Kingdom.

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