Head-To-Head Analysis: Bird Construction (OTCMKTS:BIRDF) vs. Aecon Group (OTCMKTS:AEGXF)

Bird Construction (OTCMKTS:BIRDF) and Aecon Group (OTCMKTS:AEGXF) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bird Construction	N/A	N/A	N/A
Aecon Group	N/A	N/A	N/A

Insider & Institutional Ownership

45.3% of Bird Construction shares are held by institutional investors. Comparatively, 45.8% of Aecon Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Bird Construction and Aecon Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bird Construction	0	0	2	0	3.00
Aecon Group	0	0	0	0	0.00

Bird Construction currently has a consensus target price of $25.25, indicating a potential upside of 40.43%. Given Bird Construction’s stronger consensus rating and higher possible upside, analysts plainly believe Bird Construction is more favorable than Aecon Group.

Dividends

Bird Construction pays an annual dividend of $0.76 per share and has a dividend yield of 4.2%. Aecon Group pays an annual dividend of $0.35 per share and has a dividend yield of 1.9%. Bird Construction pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Valuation & Earnings

This table compares Bird Construction and Aecon Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bird Construction	N/A	N/A	N/A	$0.68	26.30
Aecon Group	N/A	N/A	N/A	$0.37	51.40

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

Summary

Bird Construction beats Aecon Group on 5 of the 8 factors compared between the two stocks.

About Bird Construction

Bird Construction Inc. provides construction services in Canada. The company primarily focuses on projects in the industrial, and institutional, and infrastructure markets. It constructs large, complex industrial buildings, including manufacturing, processing, distribution, and warehouse facilities; and provides electrical and instrumentation, high voltage testing and commissioning services, as well as power line construction, structural, mechanical, and piping, including off-site metal and modular fabrication. It also engages in the civil construction operations, such as site preparation and earthworks, underground piping, utilities and foundation, drilling, blasting, and other concrete services, as well as contract mining, mine support, and greenfield and brownfield hydroelectric facilities; steel modular construction; and civil infrastructure operations comprising road, bridge, rail, and underground utilities installation. In addition, it constructs and retrofits institutional facilities, include healthcare facilities, post-secondary education facilities, K-12 schools, public safety and defence facilities, recreation facilities, transportation, courthouses, government buildings, and long term care and senior housing facilities; offers industrial maintenance, repair, and operations services; and constructs new construction and retrofit of warehousing, laboratories, manufacturing and processing facilities, data centers, office buildings, retail spaces, film studio infrastructure, hotels, and mixed-use mid- to high-rise residential buildings. Further, it offers electrical and related system services, such as electrical and mechanical infrastructure design and installation, data communications, telecommunications, security, and lifecycle services. It serves oil and gas, chemicals, liquefied natural gas, natural resources, nuclear, power, renewable energy, and water and wastewater sectors. The company was founded in 1920 and is based in Mississauga, Canada.

About Aecon Group

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.