Stantec (NYSE: STN) and Engility (NYSE:EGL) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Stantec pays an annual dividend of $0.43 per share and has a dividend yield of 1.7%. Engility does not pay a dividend. Stantec pays out 31.6% of its earnings in the form of a dividend. Stantec has raised its dividend for 5 consecutive years.
This is a breakdown of recent recommendations and price targets for Stantec and Engility, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stantec presently has a consensus price target of $40.00, indicating a potential upside of 59.05%. Engility has a consensus price target of $34.00, indicating a potential upside of 28.69%. Given Stantec’s stronger consensus rating and higher probable upside, equities analysts clearly believe Stantec is more favorable than Engility.
Risk & Volatility
Stantec has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Engility has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.
Valuation and Earnings
This table compares Stantec and Engility’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stantec||$3.96 billion||0.72||$74.82 million||$1.36||18.49|
|Engility||$1.93 billion||0.50||-$35.19 million||$2.33||11.34|
Stantec has higher revenue and earnings than Engility. Engility is trading at a lower price-to-earnings ratio than Stantec, indicating that it is currently the more affordable of the two stocks.
This table compares Stantec and Engility’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
56.0% of Stantec shares are owned by institutional investors. Comparatively, 95.1% of Engility shares are owned by institutional investors. 0.6% of Engility shares are owned 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.
Stantec beats Engility on 10 of the 17 factors compared between the two stocks.
Stantec Company Profile
Stantec Inc. provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally. It operates through four segments: Consulting Services ? Canada, Consulting Services ? United States, Consulting Services ? Global, and Construction Services. The company offers consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management, and project economics. It also provides construction, construction management, and project delivery at-risk services primarily on water-related projects, as well as professional supervision services to various clients in the United States and the United Kingdom. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.
Engility Company Profile
Engility Holdings, Inc., together with its subsidiaries, provides a range of technical services to the U.S. Department of Defense, U.S. Department of Justice, U.S. Department of State, Federal Aviation Administration, Department of Homeland Security, and space-related and intelligence community agencies. It offers systems engineering and integration services, including engineering and technology lifecycle support, information assurance, modeling and simulation, and architecture analysis and modernization; and cybersecurity services, such as vulnerability assessments and penetration testing, independent test and evaluation, cybersecurity systems engineering, cyber quick reaction range capability, and cyber hunting. The company also provides high performance computing services comprising architecture and infrastructure design, data management and analytics, and integration and testing, as well as systems operation, optimization, and sustainment; and enterprise modernization services, which include architecture analysis and modernization, information technology services and solutions, and software development and integration. In addition, it offers mission and operations support solutions in the areas of artificial intelligence, space launch and space flight, law enforcement, intelligence analysis, air traffic management, engineering and fabrication, and communication data exchange; and readiness and training solutions, including training development, learning, and knowledge management. The company was incorporated in 2012 and is based in Chantilly, Virginia. Engility Holdings, Inc. is a subsidiary of Birch Partners, LP.
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