Analyzing Stantec (STN) and Its Competitors

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

Insider & Institutional Ownership

57.0% of Stantec shares are held by institutional investors. Comparatively, 79.0% of shares of all “Construction & Engineering” companies are held by institutional investors. 11.1% of shares of all “Construction & Engineering” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Stantec and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Stantec $2.84 billion $305.54 million 36.86
Stantec Competitors $3.12 billion $137.70 million 18.85

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.

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 1.5% and pay out 125.9% of their earnings in the form of a dividend. Stantec has increased its dividend for 4 consecutive years.

Volatility and Risk

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Stantec and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stantec 0 3 2 0 2.40
Stantec Competitors 157 900 1556 17 2.54

Stantec currently has a consensus target price of $32.75, suggesting a potential upside of 13.91%. As a group, “Construction & Engineering” companies have a potential upside of 20.05%. Given Stantec’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Stantec has less favorable growth aspects than its rivals.

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 1.90% -27.90% 2.21%

Summary

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

Stantec Company Profile

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.

Receive News & Ratings for Stantec Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stantec Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply