AECOM vs Aecon Which Is More Reliable?

AECOM and Aecon are both prominent companies in the construction and engineering industry, with a strong presence in North America. AECOM, a global infrastructure firm, offers a diverse range of services including design, consulting, and construction management. Aecon is a Canadian-based company specializing in construction and infrastructure development. Investors looking to capitalize on the growth potential of the industry may consider comparing the stocks of these two companies to make informed investment decisions.

AECOM or Aecon?

When comparing AECOM and Aecon, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AECOM and Aecon.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AECOM has a dividend yield of 0.79%, while Aecon has a dividend yield of 2.93%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AECOM reports a 5-year dividend growth of 0.00% year and a payout ratio of 28.65%. On the other hand, Aecon reports a 5-year dividend growth of 7.71% year and a payout ratio of -73.05%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AECOM P/E ratio at 37.21 and Aecon's P/E ratio at -26.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AECOM P/B ratio is 6.85 while Aecon's P/B ratio is 1.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AECOM has seen a 5-year revenue growth of -0.18%, while Aecon's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AECOM's ROE at 18.02% and Aecon's ROE at -6.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $111.26 for AECOM and $19.01 for Aecon. Over the past year, AECOM's prices ranged from $82.23 to $118.56, with a yearly change of 44.18%. Aecon's prices fluctuated between $8.93 and $22.26, with a yearly change of 149.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.