The Shaw Group (NYSE: SHAW) and Stantec (NYSE:STN) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
This table compares The Shaw Group and Stantec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Shaw Group||N/A||N/A||N/A|
54.4% of Stantec shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Stantec pays an annual dividend of $0.39 per share and has a dividend yield of 1.4%. The Shaw Group does not pay a dividend. Stantec pays out 48.1% of its earnings in the form of a dividend. Stantec has increased its dividend for 5 consecutive years.
Valuation & Earnings
This table compares The Shaw Group and Stantec’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Shaw Group||N/A||N/A||N/A||$3.25||N/A|
|Stantec||$3.22 billion||1.00||$98.59 million||$0.81||34.81|
Stantec has higher revenue and earnings than The Shaw Group. The Shaw Group is trading at a lower price-to-earnings ratio than Stantec, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for The Shaw Group and Stantec, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Shaw Group||0||0||0||0||N/A|
Stantec has a consensus price target of $40.00, suggesting a potential upside of 41.84%.
Stantec beats The Shaw Group on 8 of the 10 factors compared between the two stocks.
The Shaw Group Company Profile
The Shaw Group Inc. (Shaw) is a provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to a diverse client base that includes multinational and national oil companies and industrial corporations, regulated utilities, independent and merchant power producers, and government agencies. The Company has developed and acquired intellectual property, including induction pipe bending technology and environmental decontamination technologies. Its segments include Power, Plant Services, Environmental & Infrastructure (E&I), Fabrication & Manufacturing (F&M), Energy & Chemicals (E&C) Segment, Investment in Westinghouse, and Corporate segment. Effective August 31, 2012, the Company completed the divestiture of its Energy & Chemicals business to Technip. On January 4, 2013, TOSHIBA CORP acquired a 20% stake in Westinghouse from Shaw Group Inc.
Stantec Company Profile
Stantec Inc. is a provider of professional services in the area of infrastructure and facilities for clients in the public and private sectors. The Company’s operates through four segments Consulting Services-Canada, Consulting Services-United States, Consulting Services-Global and Construction Services. The Company’s services include engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, construction services, project management, and project economics, from initial project concept and planning through to design, construction, commissioning, maintenance, decommissioning and remediation. The Company provides professional consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management and project economics in the area of infrastructure and facilities, principally under fee-for-service agreements with clients.
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