Critical Analysis: AECOM (NYSE:ACM) and SKK (NASDAQ:SKK)

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

Volatility & Risk

SKK has a beta of -0.97, meaning that its stock price is 197% less volatile than the S&P 500. Comparatively, AECOM has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Earnings and Valuation

This table compares SKK and AECOM”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SKK	$13.47 million	0.46	$440,000.00	N/A	N/A
AECOM	$16.14 billion	0.78	$561.77 million	$4.21	23.05

AECOM has higher revenue and earnings than SKK.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SKK	N/A	N/A	N/A
AECOM	3.48%	27.35%	5.84%

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of current ratings and target prices for SKK and AECOM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SKK	1	0	0	0	1.00
AECOM	0	2	9	0	2.82

AECOM has a consensus target price of $132.80, suggesting a potential upside of 36.86%. Given AECOM’s stronger consensus rating and higher possible upside, analysts plainly believe AECOM is more favorable than SKK.

Summary

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

About SKK

SKK Holdings Limited, through its subsidiaries, provides civil engineering services in Singapore. It undertakes subsurface utility works, such as power and telecommunication cable laying works, water pipeline works, and sewer rehabilitation works. The company also offers gas pipeline and sewer construction works; and underground piping, underground utility infrastructure construction and maintenance, horizontal directional drilling, and plumbing and sanitary works. It serves government authorities, utility companies, or contractors. The company was founded in 2013 and is headquartered in Singapore.

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.