Financial Contrast: Bouygues (OTCMKTS:BOUYF) versus AECOM (NYSE:ACM)

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

Insider and Institutional Ownership

85.4% of AECOM shares are owned by institutional investors. 0.5% 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 will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bouygues	$64.34 billion	1.75	$1.29 billion	$3.80	15.62
AECOM	$16.14 billion	0.48	$561.77 million	$2.18	27.41

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bouygues and AECOM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bouygues	0	2	2	0	2.50
AECOM	2	2	9	0	2.54

AECOM has a consensus price target of $88.25, indicating a potential upside of 47.70%. Given AECOM’s stronger consensus rating and higher probable upside, analysts plainly believe AECOM is more favorable than Bouygues.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bouygues	2.22%	8.64%	1.98%
AECOM	1.87%	19.72%	4.10%

Volatility and Risk

Bouygues has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, AECOM has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Summary

AECOM beats Bouygues on 9 of the 14 factors compared between the two stocks.

About Bouygues

Bouygues SA, together with its subsidiaries, operates in the construction, energy, telecom, media, and transport infrastructure sectors in France and internationally. The company designs, builds, renovates, operates, and deconstructs building, infrastructure, and industrial projects; develops urban planning, residential, and commercial projects; builds and maintains roads and motorways, airport runways, ports, industrial logistics hubs, external works and amenities, reserved-lane public transport, recreational facilities, and environmental projects, as well as undertakes civil engineering, road safety, and signaling activities; produces, distributes, sells, and recycles aggregates, emulsions, asphalt mixes, ready-mix concrete, and bitumen; construction, renewal, and maintenance of rail networks; and installation and maintenance of pipes and pipelines. It also provides design, installation, and maintenance services in various fields that include cooling and fire protection, digital and ICT, electrical, and mechanical and robotics, as well as heating, ventilation, and air conditioning. In addition, the company produces TF1, TMC, TFX, TF1, and LCI complementary TV channels; operates Ushuaïa TV, Histoire TV, TV Breizh, and Serieclub channels; produces, broadcasts, and distributes content; operates la seine musical entertainment and concert venue; and entertainment and leisure comprising licenses, podcasts, music production, and live events. Further, it offers telecom services; and mobile and fixed network services. The company was founded in 1952 and is based in Paris, France.

About AECOM

AECOM, together with its subsidiaries, provides professional infrastructure consulting services worldwide. It operates in three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to public and private clients. It is also involved in the investment and development of real estate projects. In addition, the company provides construction services, including building construction and energy, and infrastructure and industrial construction. It serves transportation, water, government, facilities, environmental, and energy sectors. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was incorporated in 1980 and is headquartered in Dallas, Texas.