Head to Head Analysis: Hill International (HIL) & Stantec (STN)

Hill International (NYSE: HIL) and Stantec (NYSE:STN) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Dividends

Stantec pays an annual dividend of $0.43 per share and has a dividend yield of 1.7%. Hill International does not pay a dividend. Stantec pays out 31.6% of its earnings in the form of a dividend. Stantec has raised its dividend for 5 consecutive years.

Risk & Volatility

Hill International has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Stantec has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares Hill International and Stantec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hill International N/A N/A N/A
Stantec 3.67% 10.74% 5.24%

Earnings & Valuation

This table compares Hill International and Stantec’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hill International $520.85 million 0.57 -$33.81 million N/A N/A
Stantec $3.96 billion 0.73 $74.82 million $1.36 18.64

Stantec has higher revenue and earnings than Hill International.

Analyst Recommendations

This is a summary of current ratings and price targets for Hill International and Stantec, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hill International 0 0 0 0 N/A
Stantec 0 1 1 0 2.50

Stantec has a consensus price target of $40.00, indicating a potential upside of 57.79%. Given Stantec’s higher probable upside, analysts clearly believe Stantec is more favorable than Hill International.

Institutional & Insider Ownership

59.3% of Hill International shares are owned by institutional investors. Comparatively, 56.3% of Stantec shares are owned by institutional investors. 13.6% of Hill International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Stantec beats Hill International on 11 of the 14 factors compared between the two stocks.

About Hill International

Hill International, Inc. provides project and construction management, and other consulting services primarily for the buildings, transportation, environmental, energy, and industrial markets. The company offers program management, project management, construction management, project management oversight, troubled project turnaround, staff augmentation, project labor agreement consulting, commissioning, estimating and cost management, and labor compliance and facilities management services. It also manages various phases of the construction process for construction owners, which include cost and budget controls, scheduling, estimating, expediting, inspection, contract administration, and management of contractors, subcontractors, and suppliers. The company primarily serves the United States and other national governments, state and local governments, foreign governments, and the private sector customers. Hill International, Inc. operates in the United States, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1976 and is headquartered in Philadelphia, Pennsylvania.

About Stantec

Stantec Inc. provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally. It operates through four segments: Consulting Services ? Canada, Consulting Services ? United States, Consulting Services ? Global, and Construction Services. The company offers consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management, and project economics. It also provides construction, construction management, and project delivery at-risk services primarily on water-related projects, as well as professional supervision services to various clients in the United States and the United Kingdom. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.

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