AECOM (NYSE:ACM – Get Free Report) and Weir Group (OTCMKTS:WEGRY – Get Free Report) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Dividends
AECOM pays an annual dividend of $1.04 per share and has a dividend yield of 0.8%. Weir Group pays an annual dividend of $0.26 per share and has a dividend yield of 1.5%. AECOM pays out 22.7% of its earnings in the form of a dividend. AECOM has raised its dividend for 3 consecutive years.
Profitability
This table compares AECOM and Weir Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
AECOM | 3.82% | 27.87% | 5.78% |
Weir Group | N/A | N/A | N/A |
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
AECOM | 0 | 0 | 9 | 0 | 3.00 |
Weir Group | 0 | 2 | 1 | 2 | 3.00 |
AECOM currently has a consensus price target of $128.44, indicating a potential upside of 3.34%. Given AECOM’s higher possible upside, equities research analysts clearly believe AECOM is more favorable than Weir Group.
Institutional and Insider 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, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
AECOM has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Weir Group has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Earnings & Valuation
This table compares AECOM and Weir Group”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
AECOM | $16.11 billion | 1.02 | $402.27 million | $4.59 | 27.08 |
Weir Group | $3.20 billion | N/A | $398.96 million | N/A | N/A |
AECOM has higher revenue and earnings than Weir Group.
Summary
AECOM beats Weir Group on 10 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 Weir Group
The Weir Group PLC produces and sells highly engineered original equipment worldwide. It operates in two segments, Minerals and ESCO. The Minerals segment offers engineering, manufacturing, and service processing technology for the use in abrasive high-wear mining applications; and differentiated technology for the use in infrastructure and general industrial markets. The ESCO segment provides ground engaging tools for large mining machines. This segment also offers cloud-based Artificial Intelligence solutions to the mining industry; manufactures and distributes highly engineered wear parts; and offers aftermarket services to the mining industry. The company offers its products under the Accumin, All-Cast, Aspir, Bucyrus Blades, Carbide Plus, Cavex, Delta Industrial, Enduron, ESCO, EverSharp, GEHO, GeoVor, Infinity, Isogate, Kwik-Lok, Lewis, Linacure, Linagard, Linard, Linatex, Loadmaster, MaxTemp, Motion Metrics, Multiflo, Nemisys, Posilok, Production Master, ProFill, Sand,aster, Super V, SV2, Synertrex, TopLock, Trio, UltraEdge, Ultrlok, Uni-Lok, Vulco, Warman, and Whisler Plus brands. The Weir Group PLC was founded in 1871 and is headquartered in Glasgow, the United Kingdom.
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