AECOM vs Jacobs Engineering Which Is a Better Investment?

AECOM and Jacobs Engineering are two leading companies in the engineering and construction industry, offering a wide range of services to clients worldwide. In recent years, both companies have experienced growth and success, but have also faced challenges in a rapidly changing market. Investors looking to choose between AECOM and Jacobs Engineering stocks must consider factors such as financial performance, industry trends, and competitive positioning. This comparison will analyze key metrics and factors to help investors make an informed decision.

AECOM or Jacobs Engineering?

When comparing AECOM and Jacobs Engineering, 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 Jacobs Engineering.

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 Jacobs Engineering has a dividend yield of 0.99%. 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, Jacobs Engineering reports a 5-year dividend growth of 11.63% year and a payout ratio of 22.09%.

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 59.48 and Jacobs Engineering's P/E ratio at 29.18. 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 6.60 while Jacobs Engineering's P/B ratio is 2.78.

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 Jacobs Engineering's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AECOM's ROE at 11.40% and Jacobs Engineering's ROE at 9.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $110.36 for AECOM and $146.49 for Jacobs Engineering. Over the past year, AECOM's prices ranged from $79.95 to $115.74, with a yearly change of 44.77%. Jacobs Engineering's prices fluctuated between $100.84 and $148.89, with a yearly change of 47.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.