Aegion Corp (NASDAQ: AEGN) and AECOM (NYSE:ACM) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Aegion Corp has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, AECOM has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Earnings & Valuation

This table compares Aegion Corp and AECOM’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aegion Corp $1.31 billion 0.53 $127.37 million $1.36 16.25
AECOM $17.67 billion 0.32 $790.46 million $1.64 22.30

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

Analyst Recommendations

This is a summary of recent ratings for Aegion Corp and AECOM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aegion Corp 0 5 2 0 2.29
AECOM 0 5 4 0 2.44

Aegion Corp presently has a consensus price target of $23.88, indicating a potential upside of 8.03%. AECOM has a consensus price target of $38.89, indicating a potential upside of 6.34%. Given Aegion Corp’s higher probable upside, research analysts clearly believe Aegion Corp is more favorable than AECOM.

Profitability

This table compares Aegion Corp and AECOM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aegion Corp 3.57% 7.52% 3.65%
AECOM 1.46% 12.19% 3.29%

Insider & Institutional Ownership

88.8% of Aegion Corp shares are owned by institutional investors. Comparatively, 82.1% of AECOM shares are owned by institutional investors. 3.6% of Aegion Corp shares are owned by company insiders. Comparatively, 0.7% of AECOM shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

AECOM beats Aegion Corp on 7 of the 13 factors compared between the two stocks.

About Aegion Corp

Aegion Corporation (Aegion) is engaged in providing infrastructure protection and maintenance. The Company operates through three segments: Infrastructure Solutions, Corrosion Protection and Energy Services. The Company offers service solutions, including rehabilitation of water and wastewater pipelines with Insituform cured-in-place pipe (CIPP) products; fusible polyvinyl chloride products for rehabilitation; fiber reinforced polymer systems for rehabilitation and strengthening; cathodic protection for corrosion engineering control and infrastructure rehabilitation; pipe coatings for corrosion control and prevention; high density polyethylene (HDPE) pipe lining for corrosion control, abrasion protection and pipeline rehabilitation, and construction and maintenance of oil and gas facilities. The Company’s Insituform CIPP Process for the rehabilitation of sewers, pipelines and other conduits utilizes a custom-manufactured tube, or liner, made of synthetic fiber.

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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