AECOM (NYSE:ACM – Get Free Report) and Energy Services of America (NASDAQ:ESOA – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Insider and Institutional Ownership
85.4% of AECOM shares are owned by institutional investors. Comparatively, 2.1% of Energy Services of America shares are owned by institutional investors. 0.5% of AECOM shares are owned by company insiders. Comparatively, 44.7% of Energy Services of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares AECOM and Energy Services of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AECOM | 1.87% | 19.72% | 4.10% |
| Energy Services of America | N/A | N/A | N/A |
Valuation & Earnings
This table compares AECOM and Energy Services of America”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AECOM | $16.14 billion | 0.53 | $561.77 million | $2.18 | 30.65 |
| Energy Services of America | $467.37 million | N/A | N/A | $0.18 | 46.03 |
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.
Dividends
AECOM pays an annual dividend of $1.24 per share and has a dividend yield of 1.9%. Energy Services of America pays an annual dividend of $0.16 per share and has a dividend yield of 1.9%. AECOM pays out 56.9% of its earnings in the form of a dividend. 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 has increased its dividend for 3 consecutive years.
Analyst Ratings
This is a breakdown of recent recommendations for AECOM and Energy Services of America, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AECOM | 1 | 3 | 8 | 0 | 2.58 |
| Energy Services of America | 0 | 2 | 2 | 0 | 2.50 |
AECOM presently has a consensus price target of $80.73, suggesting a potential upside of 20.81%. Energy Services of America has a consensus price target of $22.50, suggesting a potential upside of 167.13%. Given Energy Services of America’s higher probable upside, analysts clearly believe Energy Services of America is more favorable than AECOM.
Summary
AECOM beats Energy Services of America 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 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.
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