Head-To-Head Comparison: Magnera (NYSE:MAGN) versus AECOM (NYSE:ACM)

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

Earnings and Valuation

This table compares Magnera and AECOM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.13	-$159.00 million	($1.96)	-5.73
AECOM	$15.99 billion	0.57	$561.77 million	$3.83	18.59

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

Volatility and Risk

Magnera has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, AECOM has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

76.9% of Magnera shares are owned by institutional investors. Comparatively, 85.4% of AECOM shares are owned by institutional investors. 1.0% of Magnera shares are owned by insiders. Comparatively, 0.5% of AECOM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnera	-3.37%	-10.30%	-2.77%
AECOM	3.16%	28.52%	6.08%

Analyst Recommendations

This is a breakdown of current recommendations for Magnera and AECOM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	2	0	0	1.67
AECOM	0	4	9	0	2.69

Magnera currently has a consensus price target of $14.50, suggesting a potential upside of 29.22%. AECOM has a consensus price target of $116.00, suggesting a potential upside of 62.89%. Given AECOM’s stronger consensus rating and higher probable upside, analysts plainly believe AECOM is more favorable than Magnera.

Summary

AECOM beats Magnera on 12 of the 14 factors compared between the two stocks.

About Magnera

Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.

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.