VSE (VSEC) & Ecology and Environment (EEI) Critical Survey

VSE (NASDAQ:VSEC) and Ecology and Environment (NASDAQ:EEI) are both small-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Earnings and Valuation

This table compares VSE and Ecology and Environment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VSE $760.11 million 0.45 $39.09 million N/A N/A
Ecology and Environment $104.50 million 0.53 $3.01 million N/A N/A

VSE has higher revenue and earnings than Ecology and Environment.

Profitability

This table compares VSE and Ecology and Environment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VSE 6.07% 10.77% 5.15%
Ecology and Environment 2.01% 6.33% 4.36%

Institutional and Insider Ownership

73.3% of VSE shares are owned by institutional investors. Comparatively, 30.1% of Ecology and Environment shares are owned by institutional investors. 20.9% of VSE shares are owned by insiders. Comparatively, 23.7% of Ecology and Environment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

VSE pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Ecology and Environment pays an annual dividend of $0.40 per share and has a dividend yield of 3.1%. VSE has increased its dividend for 14 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for VSE and Ecology and Environment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VSE 0 0 0 0 N/A
Ecology and Environment 0 0 0 0 N/A

Risk and Volatility

VSE has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Ecology and Environment has a beta of -0.57, meaning that its stock price is 157% less volatile than the S&P 500.

Summary

VSE beats Ecology and Environment on 8 of the 12 factors compared between the two stocks.

About VSE

VSE Corporation operates as a diversified services and supply company in the United States. The company operates through three segments: Supply Chain Management Group, Aviation Group, and Federal Services Group. The Supply Chain Management Group segment offers sourcing, acquisition, scheduling, transportation, shipping, logistics, data management, and other services to assist its clients with supply chain management. This segment supplies vehicle parts and mission critical supply chain support to the United States Postal Service (USPS) vehicle fleet and commercial truck fleets; and fleet management and sustainment solutions, and managed inventory services to the Department of Defense. The Aviation Group segment provides maintenance, repair, and overhaul (MRO) services; and parts supply and distribution for general aviation jet aircraft engines and engine accessories. This segment serves corporate and private aircraft owners, regional airlines, aviation manufacturers, aviation MRO providers, cargo transporters, and agricultural clients. The Federal Services Group segment offers foreign military sales services and refurbishment services to extend and enhance the life of existing vehicles and equipment; fleet-wide ship and aircraft support; aircraft sustainment and maintenance; and foreign military sales and other technical, management, engineering, logistics, maintenance, configuration management, prototyping, technology, and field support services to the U.S. Navy and Marine Corps, U.S. Army and Army Reserve, U.S. Air Force, and other U.S. and foreign military customers. This segment also provides IT and technical and consulting services primarily to the United States Department of Defense and other government agencies. VSE Corporation was founded in 1959 and is headquartered in Alexandria, Virginia.

About Ecology and Environment

Ecology & Environment, Inc., an environmental consulting firm, provides professional services to government and private clients worldwide. It offers support services for response and site assessment activities related to the release and threat of release of oil, petroleum products, hazardous substances, and weapons of mass destruction or pollutants or contaminants; and undertakes task order contracts comprising various environmental assessment projects, engineering and oversight of pollution remediation, and other hazardous waste remediation activities, as well as prepares environmental impact assessment documents for federal land management agencies. The company also provides services to various phases of energy development by conducting critical feature/fatal flaw analyses, social and health impact assessments, feasibility and siting studies, field surveys, permitting, construction inspection, and compliance monitoring. In addition, it conceives and designs environmental restoration projects that restore affected habitat through the integration of biological and engineering solutions; offers sustainability, resiliency, and climate adaptation services, as well as environmental planning and assessment, and military master planning and land use compatibility study services; and provides water supply, water quality, and watershed management services. Further, the company offers logistical support, emergency response/management, and planning services in various preparedness, mitigation, response, and recovery phases, as well as conducts hazardous waste site evaluations providing site investigation, engineering design, and operation and maintenance. Additionally, it is involved in the management and financial planning; institutional strengthening and standards development; water supply and development; wastewater treatment; and solid waste project construction supervision assignments. The company was founded in 1970 and is headquartered in Lancaster, New York.

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