Energy Services of America (NASDAQ:ESOA – Get Free Report) and AECOM (NYSE:ACM – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Profitability
This table compares Energy Services of America and AECOM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Energy Services of America | N/A | N/A | N/A |
| AECOM | 1.87% | 19.72% | 4.10% |
Dividends
Energy Services of America pays an annual dividend of $0.16 per share and has a dividend yield of 1.4%. AECOM pays an annual dividend of $1.24 per share and has a dividend yield of 2.0%. Energy Services of America pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AECOM pays out 56.9% of its earnings in the form of a dividend. AECOM has increased its dividend for 3 consecutive years. AECOM is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Energy Services of America | $467.37 million | N/A | N/A | $0.18 | 62.19 |
| AECOM | $15.39 billion | 0.53 | $561.77 million | $2.18 | 29.14 |
AECOM has higher revenue and earnings than Energy Services of America. AECOM is trading at a lower price-to-earnings ratio than Energy Services of America, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
2.1% of Energy Services of America shares are held by institutional investors. Comparatively, 85.4% of AECOM shares are held by institutional investors. 44.7% of Energy Services of America shares are held by company insiders. Comparatively, 0.5% of AECOM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Energy Services of America and AECOM, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Energy Services of America | 0 | 1 | 1 | 0 | 2.50 |
| AECOM | 2 | 2 | 9 | 0 | 2.54 |
Energy Services of America currently has a consensus target price of $25.00, indicating a potential upside of 119.68%. AECOM has a consensus target price of $88.25, indicating a potential upside of 38.94%. Given Energy Services of America’s higher possible upside, analysts plainly believe Energy Services of America is more favorable than AECOM.
Summary
AECOM beats Energy Services of America on 11 of the 14 factors compared between the two stocks.
About Energy Services of America
Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.
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.
Receive News & Ratings for Energy Services of America Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Energy Services of America and related companies with MarketBeat.com's FREE daily email newsletter.
-logo-1200x675.png){kind=logo}
