Financial Analysis: Chiyoda (OTCMKTS:CHYCY) and AECOM (NYSE:ACM)

AECOM (NYSE:ACM) and Chiyoda (OTCMKTS:CHYCY) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AECOM	3.48%	27.35%	5.84%
Chiyoda	7.36%	92.87%	6.80%

Analyst Ratings

This is a summary of recent ratings and price targets for AECOM and Chiyoda, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AECOM	0	2	10	0	2.83
Chiyoda	0	0	0	0	0.00

AECOM presently has a consensus target price of $141.90, suggesting a potential upside of 43.53%. Given AECOM’s stronger consensus rating and higher possible upside, equities analysts clearly believe AECOM is more favorable than Chiyoda.

Valuation & Earnings

This table compares AECOM and Chiyoda”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AECOM	$16.14 billion	0.81	$561.77 million	$4.21	23.48
Chiyoda	$3.00 billion	0.39	$178.11 million	$0.29	15.59

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

Risk & Volatility

AECOM has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Chiyoda has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500.

Insider and Institutional Ownership

85.4% of AECOM shares are held by institutional investors. 0.4% of AECOM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

AECOM beats Chiyoda on 11 of the 14 factors compared between the two stocks.

About AECOM

AECOM, together with its subsidiaries, provides professional infrastructure consulting services worldwide. It operates in three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to public and private clients. It is also involved in the investment and development of real estate projects. In addition, the company provides construction services, including building construction and energy, and infrastructure and industrial construction. It serves transportation, water, government, facilities, environmental, and energy sectors. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was incorporated in 1980 and is headquartered in Dallas, Texas.

About Chiyoda

Chiyoda Corporation engages in the integrated engineering business in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.