Renew (OTCMKTS:RNWHF) vs. AECOM (NYSE:ACM) Critical Survey

Renew (OTCMKTS:RNWHF) and AECOM (NYSE:ACM) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Renew	N/A	N/A	N/A
AECOM	1.87%	19.72%	4.10%

Institutional and Insider Ownership

85.4% of AECOM shares are owned by institutional investors. 0.5% of AECOM shares are owned by company 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Renew and AECOM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renew	0	0	0	0	0.00
AECOM	2	2	9	0	2.54

AECOM has a consensus price target of $94.58, suggesting a potential upside of 45.78%. Given AECOM’s stronger consensus rating and higher probable upside, analysts plainly believe AECOM is more favorable than Renew.

Earnings and Valuation

This table compares Renew and AECOM”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Renew	N/A	N/A	N/A	N/A	N/A
AECOM	$16.14 billion	0.52	$561.77 million	$2.18	29.76

AECOM has higher revenue and earnings than Renew.

Summary

AECOM beats Renew on 9 of the 9 factors compared between the two stocks.

About Renew

Renew Holdings plc operates as a contractor in the field of engineering services and specialist building in the United Kingdom. The company engages in the provision of services to the rail, telecoms, water, highways, and energy networks. It offers operational support and asset care; critical planned and reactive maintenance and renewals; civil, mechanical, and electrical engineering services; geotechnical and earthworks; plant, power, and signaling renewals; 24/7 emergency services; asset renewal and refurbishment; tunnel and shaft refurbishment, fencing, and devegetation; and in-house design services, as well as wireless telecoms installations; critical planned and reactive maintenance and renewals; acquisition, planning and design services; 3G, 4G, 5G, and Wi-Fi technologies; temporary sites and special events; and maintenance and decommissioning services. The company also provides nuclear decommissioning and decontamination; and specialist fabrication and manufacturing services. In addition, it offers flood risk management programs; clean and wastewater rehabilitation infrastructure; and port, harbor, and sea defenses, as well as maintains strategic water mains and mains drainage. Further, the company provides soil and groundwater remediation; in-house technology and environmental engineering resources; and specialist restoration and convention, as well as designs remediation and ground engineering solutions. Additionally, it undertakes residential refurbishment, and research and laboratory schemes; temporary structural engineering works; sale of land, and the leasing and sub-leasing of properties; and refurbishment of private residential assets, as well as the construction, renovation, and refurbishment of science facilities. The company was formerly known as Montpellier Group Plc and changed its name to Renew Holdings plc in December 2005. Renew Holdings plc was founded in 1786 and is headquartered in Leeds, the United Kingdom.

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.