Reviewing Engility (EGL) and AECOM (ACM)

Engility (NYSE: EGL) and AECOM (NYSE:ACM) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Valuation and Earnings

This table compares Engility and AECOM’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Engility $1.93 billion 0.57 -$35.19 million $2.33 12.80
AECOM $18.20 billion 0.29 $339.39 million $2.94 11.36

AECOM has higher revenue and earnings than Engility. AECOM is trading at a lower price-to-earnings ratio than Engility, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Engility and AECOM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Engility -1.85% 11.70% 3.97%
AECOM 0.95% 10.60% 3.08%

Volatility & Risk

Engility has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, AECOM has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Engility and AECOM, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Engility 1 3 5 0 2.44
AECOM 1 3 5 0 2.44

Engility presently has a consensus price target of $34.00, indicating a potential upside of 13.98%. AECOM has a consensus price target of $36.67, indicating a potential upside of 9.81%. Given Engility’s higher possible upside, equities analysts clearly believe Engility is more favorable than AECOM.

Insider & Institutional Ownership

93.3% of Engility shares are owned by institutional investors. Comparatively, 84.6% of AECOM shares are owned by institutional investors. 0.4% of Engility shares are owned by company insiders. Comparatively, 0.7% of AECOM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Engility beats AECOM on 7 of the 12 factors compared between the two stocks.

Engility Company Profile

Engility Holdings, Inc., together with its subsidiaries, provides a range of technical services to the U.S. Department of Defense, U.S. Department of Justice, U.S. Department of State, Federal Aviation Administration, Department of Homeland Security, and space-related and intelligence community agencies. It offers systems engineering and integration services, including engineering and technology lifecycle support, information assurance, modeling and simulation, and architecture analysis and modernization; and cybersecurity services, such as vulnerability assessments and penetration testing, independent test and evaluation, cybersecurity systems engineering, cyber quick reaction range capability, and cyber hunting. The company also provides high performance computing services comprising architecture and infrastructure design, data management and analytics, and integration and testing, as well as systems operation, optimization, and sustainment; and enterprise modernization services, which include architecture analysis and modernization, information technology services and solutions, and software development and integration. In addition, it offers mission and operations support solutions in the areas of artificial intelligence, space launch and space flight, law enforcement, intelligence analysis, air traffic management, engineering and fabrication, and communication data exchange; and readiness and training solutions, including training development, learning, and knowledge management. The company was incorporated in 2012 and is based in Chantilly, Virginia. Engility Holdings, Inc. is a subsidiary of Birch Partners, LP.

AECOM Company Profile

AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The company operates through four segments: Design and Consulting Services (DCS), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP). The DCS segment provides planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, such as transportation, facilities, environmental, and energy/power markets. The CS segment offers building construction and energy, as well as infrastructure and industrial construction services. The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services primarily for agencies of the U.S. government and other national governments. The ACAP segment invests in and develops real estate, public-private partnership (P3), and infrastructure projects. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was founded in 1980 and is headquartered in Los Angeles, California.

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