Analyzing SU Group (NASDAQ:SUGP) and AECOM (NYSE:ACM)

SU Group (NASDAQ:SUGP) and AECOM (NYSE:ACM) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SU Group	N/A	N/A	N/A
AECOM	3.82%	27.87%	5.78%

Risk and Volatility

SU Group has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500. Comparatively, AECOM has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SU Group	$23.43 million	0.38	$1.37 million	N/A	N/A
AECOM	$16.07 billion	1.06	$402.27 million	$4.59	28.07

AECOM has higher revenue and earnings than SU Group.

Institutional & Insider Ownership

68.1% of SU Group shares are owned by institutional investors. Comparatively, 85.4% of AECOM shares are owned by institutional investors. 0.4% of AECOM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SU Group	1	0	0	0	1.00
AECOM	0	0	10	0	3.00

AECOM has a consensus target price of $128.44, suggesting a potential downside of 0.32%. Given AECOM’s stronger consensus rating and higher possible upside, analysts clearly believe AECOM is more favorable than SU Group.

Summary

AECOM beats SU Group on 11 of the 12 factors compared between the two stocks.

About SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.

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.