Critical Review: Aecon Group (OTCMKTS:AEGXF) & Monadelphous Group (OTCMKTS:MOPHY)

Aecon Group (OTCMKTS:AEGXFGet Free Report) and Monadelphous Group (OTCMKTS:MOPHYGet Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares Aecon Group and Monadelphous Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aecon Group N/A N/A N/A
Monadelphous Group N/A N/A N/A

Insider and Institutional Ownership

45.8% of Aecon Group shares are owned by institutional investors. Comparatively, 2.9% of Monadelphous Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Aecon Group and Monadelphous Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aecon Group 0 0 1 0 3.00
Monadelphous Group 1 0 2 0 2.33

Aecon Group currently has a consensus target price of $21.30, suggesting a potential upside of 73.88%. Given Aecon Group’s stronger consensus rating and higher possible upside, analysts plainly believe Aecon Group is more favorable than Monadelphous Group.

Earnings and Valuation

This table compares Aecon Group and Monadelphous Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aecon Group N/A N/A N/A $0.37 33.53
Monadelphous Group N/A N/A N/A C$1.59 5.49

Monadelphous Group is trading at a lower price-to-earnings ratio than Aecon Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Aecon Group pays an annual dividend of $0.35 per share and has a dividend yield of 2.9%. Monadelphous Group pays an annual dividend of C$0.54 per share and has a dividend yield of 6.2%. Aecon Group pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monadelphous Group pays out 34.2% of its earnings in the form of a dividend. Monadelphous Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Aecon Group

(Get Free Report)

Aecon Group Inc., together with its subsidiaries, provide construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally. It operates through two segments, Construction and Concessions. The Construction segment focuses on civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure, and conventional industrial infrastructure market sectors. The Concessions segment engages in the development, building, financing, and operation of construction projects by way of public-private partnership contract structures. This segment also provides development of domestic international public-private partnership; private finance solution; developing strategic partnerships; leading and/or participating in development teams; and operations and maintenance of infrastructure assets services. The company was formerly known as Prefac Concrete Co. Ltd. and changed its name to Aecon Group Inc. in June 2001. Aecon Group Inc. was founded in 1867 and is headquartered in Toronto, Canada.

About Monadelphous Group

(Get Free Report)

Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to resources, energy, and infrastructure industries in Australia, Chile, Mongolia, Papua New Guinea, and internationally. It operates through Engineering Construction, and Maintenance and Industrial Services divisions. The company offers fabrication, modularization, offsite pre-assembly, procurement, and installation of structural steel, tankage, mechanical and process equipment, piping, demolition, and remediation works; multi-disciplined construction services; plant commissioning; electrical and instrumentation services; engineering, procurement, and construction services; process and non-process maintenance services; and front-end scoping, shutdown planning, management, and execution services. It also provides water and wastewater asset construction and maintenance; transmission pipelines and facilities construction; power and water assets operation and maintenance; heavy lift and specialist transport; access solutions; dewatering services; corrosion management services; specialist coatings; rail maintenance services; and insulation and cladding services. In addition, it offers turnkey design and construction, heavy lift and crane, and civil and electrical services. The company was founded in 1972 and is headquartered in Perth, Australia.

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