AECOM (NYSE:ACM) vs. Metallurgical Corp. of China (OTCMKTS:MLLUY) Head to Head Review

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

Valuation & Earnings

This table compares AECOM and Metallurgical Corp. of China”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AECOM	$16.07 billion	1.09	$402.27 million	$4.59	28.89
Metallurgical Corp. of China	$76.79 billion	0.07	$938.36 million	$0.58	9.36

Metallurgical Corp. of China has higher revenue and earnings than AECOM. Metallurgical Corp. of China is trading at a lower price-to-earnings ratio than AECOM, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

AECOM has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Metallurgical Corp. of China has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares AECOM and Metallurgical Corp. of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AECOM	3.82%	27.87%	5.78%
Metallurgical Corp. of China	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AECOM and Metallurgical Corp. of China, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AECOM	0	0	11	0	3.00
Metallurgical Corp. of China	0	0	0	0	0.00

AECOM presently has a consensus price target of $137.30, indicating a potential upside of 3.52%. Given AECOM’s stronger consensus rating and higher probable upside, research analysts plainly believe AECOM is more favorable than Metallurgical Corp. of China.

Institutional and Insider Ownership

85.4% of AECOM shares are owned by institutional investors. 0.4% of AECOM shares are owned by 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.

Dividends

AECOM pays an annual dividend of $1.04 per share and has a dividend yield of 0.8%. Metallurgical Corp. of China pays an annual dividend of $0.10 per share and has a dividend yield of 1.8%. AECOM pays out 22.7% of its earnings in the form of a dividend. Metallurgical Corp. of China pays out 17.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AECOM has raised its dividend for 3 consecutive years. Metallurgical Corp. of China is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

AECOM beats Metallurgical Corp. of China on 13 of the 17 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 Metallurgical Corp. of China

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company’s Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing properties; and develops land. The company’s Equipment Manufacturing segment engages in the development and production of metallurgical equipment, steel structures, and other metal products. Its Resource Development segment is involved in the development, mining, and processing of mineral resources; and the production of nonferrous metals and polysilicon. The company was founded in 2008 and is based in Beijing, the People’s Republic of China.