Financial Review: AECOM (NYSE:ACM) & Cadeler A/S (NYSE:CDLR)

AECOM (NYSE:ACM) and Cadeler A/S (NYSE:CDLR) are both mid-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

85.4% of AECOM shares are held by institutional investors. Comparatively, 53.0% of Cadeler A/S shares are held by institutional investors. 0.5% of AECOM shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

AECOM has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Cadeler A/S has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AECOM and Cadeler A/S, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AECOM	2	2	8	0	2.50
Cadeler A/S	0	3	0	0	2.00

AECOM currently has a consensus target price of $83.27, suggesting a potential upside of 40.79%. Given AECOM’s stronger consensus rating and higher probable upside, equities analysts clearly believe AECOM is more favorable than Cadeler A/S.

Profitability

This table compares AECOM and Cadeler A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AECOM	1.87%	19.72%	4.10%
Cadeler A/S	27.45%	12.58%	5.95%

Valuation and Earnings

This table compares AECOM and Cadeler A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AECOM	$16.14 billion	0.47	$561.77 million	$2.18	27.13
Cadeler A/S	$701.71 million	3.00	$317.00 million	$2.51	8.69

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

Summary

AECOM beats Cadeler A/S on 10 of the 14 factors compared between the two stocks.

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.

About Cadeler A/S

Cadeler A/S operates as an offshore wind farm transportation and installation contractor in Denmark. It also provides wind farm construction, maintenance, decommissioning, and other tasks within the offshore industry, as well as marine and engineering services. The company owns and operates four offshore jack-up windfarm installation vessels. Cadeler A/S was incorporated in 2008 and is headquartered in Copenhagen, Denmark.