IES (NASDAQ: IESC) and Aecom (NYSE:ACM) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
This table compares IES and Aecom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
78.4% of IES shares are held by institutional investors. Comparatively, 84.0% of Aecom shares are held by institutional investors. 61.7% of IES shares are held by company insiders. Comparatively, 0.7% of Aecom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares IES and Aecom’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IES||$810.70 million||0.43||$13.42 million||$0.53||31.04|
|Aecom||$18.20 billion||0.32||$339.39 million||$2.97||12.27|
Aecom has higher revenue and earnings than IES. Aecom is trading at a lower price-to-earnings ratio than IES, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for IES and Aecom, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aecom has a consensus target price of $40.00, indicating a potential upside of 9.77%. Given Aecom’s higher probable upside, analysts clearly believe Aecom is more favorable than IES.
Risk and Volatility
IES has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Aecom has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.
Aecom beats IES on 10 of the 13 factors compared between the two stocks.
IES Holdings, Inc., formerly Integrated Electrical Services, Inc., is a holding company that owns and manages diverse operating subsidiaries across a range of infrastructure-related end markets. The Company operates through four segments: Communications, Residential, Commercial & Industrial, and Infrastructure Solutions. The Communications segment provides network infrastructure services for data centers and other mission critical environments. The Residential segment provides electrical installation services for single-family housing and multi-family apartment complexes and cable television installations for residential and light commercial applications. The Commercial & Industrial segment provides electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets. The Company’s Infrastructure Solutions segment provides electro-mechanical solutions for industrial operations to domestic and international customers.
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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