SU Group (NASDAQ:SUGP) versus Arcadis (OTCMKTS:ARCAY) Critical Analysis

SU Group (NASDAQ:SUGP) and Arcadis (OTCMKTS:ARCAY) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Earnings & Valuation

This table compares SU Group and Arcadis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SU Group	$24.72 million	0.24	-$2.38 million	N/A	N/A
Arcadis	$4.25 billion	0.96	$235.33 million	N/A	N/A

Arcadis has higher revenue and earnings than SU Group.

Risk and Volatility

SU Group has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Arcadis has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for SU Group and Arcadis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SU Group	1	0	0	0	1.00
Arcadis	0	2	0	1	2.67

Insider & Institutional Ownership

68.1% of SU Group shares are owned by institutional investors. 1.0% of Arcadis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares SU Group and Arcadis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SU Group	N/A	N/A	N/A
Arcadis	N/A	N/A	N/A

Summary

Arcadis beats SU Group on 6 of the 8 factors compared between the two stocks.

About SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.

About Arcadis

Arcadis NV offers design, engineering, and consultancy solutions for natural and built assets in The Americas, Europe, the Middle East, and the Asia Pacific. It operates through Places, Mobility, Resilience, and Intelligence segments. The company offers architectural and urbanism services; and asset management services, such as asset management strategy and planning, asset management decision making and operational optimization, life cycle planning and asset management systems, asset information/condition assessment, risk and review, organization and people, and asset management/O&M. It also provides business advisory services, including asset strategy and performance, business transformation and resiliency, investment and finance, operations and maintenance, and technology and information; contract solutions; cost and commercial management services; and design and engineering solutions for highways, railways, bridges, tunnels, power utilities, water utilities, ports and waterways, geotechnics, architecture, and structures, as well as building mechanical, electrical, and plumbing. In addition, the company offers digital environmental health safety and sustainability, environmental restoration, and project management solutions. Further, it provides mobility solutions for connected highways, intelligent rail and transit, integrated airports, and new mobility; places solutions; resilience solutions, such as energy transition, climate adaption, water optimization, enviro socio permitting, sustainable advisory, environmental restoration, and sustainable operations; and water supply and treatment, distribution, resource management, and industrial water and wastewater services. The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997. Arcadis NV was founded in 1888 and is headquartered in Amsterdam, the Netherlands.