Analyzing Stantec (STN) & Its Rivals
Stantec (NYSE: STN) is one of 48 publicly-traded companies in the “Construction & Engineering” industry, but how does it compare to its peers? We will compare Stantec to similar businesses based on the strength of its dividends, institutional ownership, valuation, analyst recommendations, profitability, risk and earnings.
Risk & Volatility
Stantec has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Stantec’s peers have a beta of 1.27, meaning that their average stock price is 27% more volatile than the S&P 500.
Insider and Institutional Ownership
57.0% of Stantec shares are owned by institutional investors. Comparatively, 83.6% of shares of all “Construction & Engineering” companies are owned by institutional investors. 10.0% of shares of all “Construction & Engineering” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Stantec pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Stantec pays out 51.3% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 1.5% and pay out 125.9% of their earnings in the form of a dividend. Stantec has increased its dividend for 4 consecutive years.
This is a summary of recent recommendations and price targets for Stantec and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stantec currently has a consensus price target of $32.75, suggesting a potential upside of 16.55%. As a group, “Construction & Engineering” companies have a potential upside of 18.94%. Given Stantec’s peers stronger consensus rating and higher probable upside, analysts plainly believe Stantec has less favorable growth aspects than its peers.
This table compares Stantec and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Stantec and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Stantec||$2.84 billion||$305.54 million||36.03|
|Stantec Competitors||$3.12 billion||$133.98 million||19.33|
Stantec’s peers have higher revenue, but lower earnings than Stantec. Stantec is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Stantec peers beat Stantec on 8 of the 15 factors compared.
Stantec Company Profile
Stantec Inc. is a provider of professional services in the area of infrastructure and facilities for clients in the public and private sectors. The Company’s operates through four segments Consulting Services-Canada, Consulting Services-United States, Consulting Services-Global and Construction Services. The Company’s services include engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, construction services, project management, and project economics, from initial project concept and planning through to design, construction, commissioning, maintenance, decommissioning and remediation. The Company provides professional consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management and project economics in the area of infrastructure and facilities, principally under fee-for-service agreements with clients.
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