Babcock Intl Group (OTCMKTS: BCKIY) and AECOM (NYSE:ACM) are both mid-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Institutional & Insider Ownership
84.0% of AECOM shares are held by institutional investors. 0.7% of AECOM shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Babcock Intl Group has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, AECOM has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.
Valuation & Earnings
This table compares Babcock Intl Group and AECOM’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|Babcock Intl Group
Babcock Intl Group has higher earnings, but lower revenue than AECOM. Babcock Intl Group is trading at a lower price-to-earnings ratio than AECOM, indicating that it is currently the more affordable of the two stocks.
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. Babcock Intl Group pays out 30.3% of its earnings in the form of a dividend.
This table compares Babcock Intl Group and AECOM’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Babcock Intl Group
This is a summary of recent recommendations for Babcock Intl Group and AECOM, as provided by MarketBeat.com.
||Strong Buy Ratings
|Babcock Intl Group
AECOM has a consensus price target of $40.00, indicating a potential upside of 14.38%. Given AECOM’s higher possible upside, analysts plainly believe AECOM is more favorable than Babcock Intl Group.
AECOM beats Babcock Intl Group on 12 of the 15 factors compared between the two stocks.
Babcock Intl Group Company Profile
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.
AECOM Company Profile
AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The company operates through four segments: Design and Consulting Services (DCS), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP). The DCS segment provides planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, such as transportation, facilities, environmental, and energy/power markets. The CS segment offers building construction and energy, as well as infrastructure and industrial construction services. The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services primarily for agencies of the U.S. government and other national governments. The ACAP segment invests in and develops real estate, public-private partnership (P3), and infrastructure projects. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was founded in 1980 and is headquartered in Los Angeles, California.
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