Head to Head Review: Energy Services of America (NASDAQ:ESOA) versus AtkinsRéalis (OTCMKTS:SNCAF)

Energy Services of America (NASDAQ:ESOA) and AtkinsRéalis (OTCMKTS:SNCAF) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Energy Services of America and AtkinsRéalis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Services of America	0	0	0	0	N/A
AtkinsRéalis	0	0	0	0	N/A

AtkinsRéalis has a consensus price target of $32.36, suggesting a potential downside of 18.15%. Given AtkinsRéalis’ higher probable upside, analysts plainly believe AtkinsRéalis is more favorable than Energy Services of America.

Insider and Institutional Ownership

2.1% of Energy Services of America shares are owned by institutional investors. Comparatively, 37.1% of AtkinsRéalis shares are owned by institutional investors. 44.7% of Energy Services of America shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Energy Services of America and AtkinsRéalis’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energy Services of America	$334.23 million	N/A	N/A	$0.18	38.69
AtkinsRéalis	N/A	N/A	N/A	$1.89	20.94

AtkinsRéalis is trading at a lower price-to-earnings ratio than Energy Services of America, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Energy Services of America and AtkinsRéalis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energy Services of America	N/A	N/A	N/A
AtkinsRéalis	N/A	N/A	N/A

Dividends

Energy Services of America pays an annual dividend of $0.06 per share and has a dividend yield of 0.8%. AtkinsRéalis pays an annual dividend of $0.95 per share and has a dividend yield of 2.4%. Energy Services of America pays out 32.8% of its earnings in the form of a dividend. AtkinsRéalis pays out 50.3% 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.

About Energy Services of America

Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.

About AtkinsRéalis

AtkinsRéalis operates as an integrated professional services and project management company worldwide. It operates through six segments: Engineering Services, Nuclear, O&M, Linxon, LSTK Projects, and Capital. The Engineering Services segment provides consultancy, engineering, design, and project management services for the transportation, building and places, defense, water, industrial, minerals and metal, and power and renewables sectors. The Nuclear segment offers services for clients across the nuclear life cycle consultancy, field, technology, spare parts, reactor support, and decommissioning and waste management services, as well as engineering services; and new-build and full refurbishment services for reactors. The O&M segment provides operations, maintenance, and asset management solutions for bridges, transit systems, highways, and buildings and industrial plants, as well as postal services and ships. The Linxon segment provides engineering, procurement, management, and construction services for execution of alternative current power substations, including expansions and electrification through repetitive EPC offerings for various markets, including utilities, renewables, conventional generation, transportation, and data centers. The LSTK Projects segment undertakes construction contracts for the mass transit projects. The Capital segment engages in the developing of projects, arranging financing, investing in equity, undertaking complex financial modeling, and managing its infrastructure investments, such as bridges and highways, mass transit systems, power facilities, energy infrastructure, water treatment plants, and social infrastructure. The company was formerly known as SNC-Lavalin Group Inc. and changed its name to AtkinsRéalis in September 2023. AtkinsRéalis was founded in 1911 and is headquartered in Montreal, Canada.