Financial Survey: Taisei (OTCMKTS:TISCF) and Aecon Group (OTCMKTS:AEGXF)

Aecon Group (OTCMKTS:AEGXF) and Taisei (OTCMKTS:TISCF) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Insider & Institutional Ownership

45.8% of Aecon Group shares are owned by institutional investors. Comparatively, 13.7% of Taisei shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Aecon Group and Taisei”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aecon Group	N/A	N/A	N/A	$0.37	83.80
Taisei	N/A	N/A	N/A	$27.88	4.36

Taisei is trading at a lower price-to-earnings ratio than Aecon Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Aecon Group pays an annual dividend of $0.35 per share and has a dividend yield of 1.1%. Taisei pays an annual dividend of $4.39 per share and has a dividend yield of 3.6%. Aecon Group pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taisei pays out 15.8% of its earnings in the form of a dividend. Taisei is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Aecon Group and Taisei, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aecon Group	0	2	3	0	2.60
Taisei	0	0	0	0	0.00

Aecon Group presently has a consensus price target of $23.00, indicating a potential downside of 24.89%. Given Aecon Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Aecon Group is more favorable than Taisei.

Profitability

This table compares Aecon Group and Taisei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aecon Group	N/A	N/A	N/A
Taisei	N/A	N/A	N/A

Summary

Aecon Group beats Taisei on 5 of the 8 factors compared between the two stocks.

About Aecon Group

Aecon Group Inc., together with its subsidiaries, provide construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally. It operates through two segments, Construction and Concessions. The Construction segment focuses on civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure, and conventional industrial infrastructure market sectors. The Concessions segment engages in the development, building, financing, and operation of construction projects by way of public-private partnership contract structures. This segment also provides development of domestic international public-private partnership; private finance solution; developing strategic partnerships; leading and/or participating in development teams; and operations and maintenance of infrastructure assets services. The company was formerly known as Prefac Concrete Co. Ltd. and changed its name to Aecon Group Inc. in June 2001. Aecon Group Inc. was founded in 1867 and is headquartered in Toronto, Canada.

About Taisei

Taisei Corporation engages in the civil engineering, construction, and real estate development businesses in Japan. The company constructs offices, commercial facilities, factories, schools, hospitals, tunnels, bridges, dams, railways, expressways, etc.; and engineers production facilities and development facilities for pharmaceutical and logistics fields. It also involved in the redevelopment, public-private partnership/private finance initiative, property management, in-house development, and condominium sales projects. The company was formerly known as Nippon Doboku Corporation and changed its name to Taisei Corporation in 1946. Taisei Corporation was founded in 1873 and is headquartered in Tokyo, Japan.