AECOM vs Arcadis Which Is More Profitable?

AECOM and Arcadis are two prominent players in the global engineering and construction industry, offering a wide range of services such as design, planning, and project management. Both companies have experienced growth and success in recent years, but they also face challenges related to market volatility and competition. Investors are closely monitoring their stock performance, seeking potential opportunities for growth and profitability. Understanding the key factors driving AECOM and Arcadis stocks can help investors make informed decisions in navigating the dynamic engineering and construction market.

AECOM or Arcadis?

When comparing AECOM and Arcadis, 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 Arcadis.

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 0.82%, while Arcadis has a dividend yield of 1.28%. 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 43.24%. On the other hand, Arcadis reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.72%.

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 57.00 and Arcadis's P/E ratio at 24.96. 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 6.33 while Arcadis's P/B ratio is 5.10.

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 Arcadis's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AECOM's ROE at 11.40% and Arcadis's ROE at 21.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $105.76 for AECOM and $67.69 for Arcadis. Over the past year, AECOM's prices ranged from $82.23 to $115.74, with a yearly change of 40.75%. Arcadis's prices fluctuated between $48.57 and $73.00, with a yearly change of 50.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.