Critical Review: SINOPEC Engineering (Group) (OTCMKTS:SENGF) and Stantec (NYSE:STN)

Stantec (NYSE:STN) and SINOPEC Engineering (Group) (OTCMKTS:SENGF) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

63.9% of Stantec shares are held by institutional investors. 0.5% of Stantec shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Stantec and SINOPEC Engineering (Group)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stantec	$5.83 billion	1.44	$343.11 million	$3.21	23.33
SINOPEC Engineering (Group)	N/A	N/A	N/A	N/A	N/A

Stantec has higher revenue and earnings than SINOPEC Engineering (Group).

Profitability

This table compares Stantec and SINOPEC Engineering (Group)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stantec	5.91%	19.70%	8.07%
SINOPEC Engineering (Group)	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Stantec and SINOPEC Engineering (Group), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stantec	0	2	5	0	2.71
SINOPEC Engineering (Group)	0	0	0	0	0.00

Stantec presently has a consensus price target of $175.00, suggesting a potential upside of 133.64%. Given Stantec’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Stantec is more favorable than SINOPEC Engineering (Group).

Summary

Stantec beats SINOPEC Engineering (Group) on 9 of the 9 factors compared between the two stocks.

About Stantec

Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. The company also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, it offers planning and design services to clients in residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration sectors; architectural and interior design, and planning services in the science and technology, commercial workplace, higher education, residential, and hospitality markets. Further, the company provides transportation advisory, transport engineering, and technical design; project delivery consultancy services for mining, resources, and industrial infrastructure projects; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; and environmental and cultural resource compliance services. Additionally, it offers consulting services in sustainable building design, energy infrastructure upgrades, sustainable district heating network, and e-mobility; and planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.

About SINOPEC Engineering (Group)

SINOPEC Engineering (Group) Co., Ltd., together with its subsidiaries, provides engineering, procurement, and construction (EPC) contracting services in the People's Republic of China, Saudi Arabia, Kuwait, and internationally. The company operates through Engineering, Consulting and Licensing; EPC Contracting; Construction; and Equipment Manufacturing segments. The Engineering, Consulting and Licensing segment offers design, consulting, research and development, feasibility studies, and compliance certification services. The EPC Contracting segment provides integrated engineering, procurement, construction, maintenance, and project management services. The Construction segment offers infrastructure, oil and gas storage, pipelines transportation, construction, renovation, expansion, repair and maintenance services, and large equipment lifting, as well as transportation services in construction projects. The Equipment Manufacturing segment designs, develops, manufactures, and sells equipment and spare parts for oil refining and chemical facilities. The company provides technical, and equipment selling and leasing services, as well as medicine, pesticide, and chemical research services. It serves petrol refining, chemical engineering, aromatics, coal chemicals, inorganic and pharmaceutical chemicals, clean energy, storage and transportation facilities, environmental protection, energy saving, and other industry sectors. SINOPEC Engineering (Group) Co., Ltd. was incorporated in 2012 and is based in Beijing, China. The company is a subsidiary of China Petrochemical Corporation.