Comparing SKK (NASDAQ:SKK) and AECOM (NYSE:ACM)

AECOM (NYSE:ACM) and SKK (NASDAQ:SKK) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Earnings and Valuation

This table compares AECOM and SKK”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AECOM	$16.14 billion	0.71	$561.77 million	$3.52	25.12
SKK	$11.30 million	0.49	$440,000.00	N/A	N/A

AECOM has higher revenue and earnings than SKK.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AECOM	2.94%	27.05%	5.79%
SKK	N/A	N/A	N/A

Volatility and Risk

AECOM has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, SKK has a beta of -0.99, indicating that its stock price is 199% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for AECOM and SKK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AECOM	0	4	9	0	2.69
SKK	1	0	0	0	1.00

AECOM presently has a consensus target price of $130.09, indicating a potential upside of 47.14%. Given AECOM’s stronger consensus rating and higher possible upside, analysts plainly believe AECOM is more favorable than SKK.

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, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

AECOM beats SKK on 12 of the 12 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 SKK

SKK Holdings Limited, through its subsidiaries, provides civil engineering services in Singapore. It undertakes subsurface utility works, such as power and telecommunication cable laying works, water pipeline works, and sewer rehabilitation works. The company also offers gas pipeline and sewer construction works; and underground piping, underground utility infrastructure construction and maintenance, horizontal directional drilling, and plumbing and sanitary works. It serves government authorities, utility companies, or contractors. The company was founded in 2013 and is headquartered in Singapore.