Stantec (NYSE: STN) is one of 48 publicly-traded companies in the “Construction & Engineering” industry, but how does it compare to its rivals? We will compare Stantec to similar businesses based on the strength of its risk, valuation, analyst recommendations, earnings, profitability, dividends and institutional ownership.

Institutional and Insider Ownership

57.0% of Stantec shares are held by institutional investors. Comparatively, 79.1% of shares of all “Construction & Engineering” companies are held by institutional investors. 11.1% of shares of all “Construction & Engineering” companies are held by insiders. 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.

Earnings & Valuation

This table compares Stantec and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Stantec $2.84 billion $305.54 million 36.09
Stantec Competitors $3.12 billion $137.70 million 19.36

Stantec’s rivals have higher revenue, but lower earnings than Stantec. Stantec is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Stantec has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Stantec’s rivals have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.

Dividends

Stantec pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Stantec pays out 51.3% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 1.4% and pay out 125.9% of their earnings in the form of a dividend. Stantec has raised its dividend for 4 consecutive years.

Profitability

This table compares Stantec and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stantec 2.31% 10.67% 4.95%
Stantec Competitors 1.97% -27.41% 2.31%

Analyst Ratings

This is a breakdown of recent recommendations for Stantec and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stantec 0 3 2 0 2.40
Stantec Competitors 155 890 1546 17 2.55

Stantec presently has a consensus price target of $32.75, suggesting a potential upside of 16.34%. As a group, “Construction & Engineering” companies have a potential upside of 18.65%. Given Stantec’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Stantec has less favorable growth aspects than its rivals.

Summary

Stantec rivals beat Stantec on 8 of the 15 factors compared.

About Stantec

Stantec Inc. is a provider of professional services in the area of infrastructure and facilities for clients in the public and private sectors. The Company’s operates through four segments Consulting Services-Canada, Consulting Services-United States, Consulting Services-Global and Construction Services. The Company’s services include engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, construction services, project management, and project economics, from initial project concept and planning through to design, construction, commissioning, maintenance, decommissioning and remediation. The Company provides professional consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management and project economics in the area of infrastructure and facilities, principally under fee-for-service agreements with clients.

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