Arcadis vs Stantec

Arcadis and Stantec are two prominent players in the engineering and consulting industry, with each company offering a unique set of services and expertise. Arcadis, based in the Netherlands, is known for its focus on sustainable solutions and innovative project management techniques. Stantec, a Canadian firm, has a strong track record in providing engineering, architecture, and environmental services. Both companies have seen fluctuations in their stock prices over the years, with investors closely monitoring their performance in the market.

Arcadis or Stantec?

When comparing Arcadis and Stantec, 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 Arcadis and Stantec.

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. Arcadis has a dividend yield of 1.3%, while Stantec has a dividend yield of 0.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Arcadis reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.72%. On the other hand, Stantec reports a 5-year dividend growth of 6.96% year and a payout ratio of 26.12%.

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 Arcadis P/E ratio at 25.18 and Stantec's P/E ratio at 38.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Arcadis P/B ratio is 5.15 while Stantec's P/B ratio is 4.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Arcadis has seen a 5-year revenue growth of 0.49%, while Stantec's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Arcadis's ROE at 21.12% and Stantec's ROE at 12.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $70.51 for Arcadis and $82.76 for Stantec. Over the past year, Arcadis's prices ranged from $39.46 to $73.00, with a yearly change of 85.00%. Stantec's prices fluctuated between $59.55 and $88.42, with a yearly change of 48.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.