Taisei (OTCMKTS:TISCY – Get Free Report) and Arcosa (NYSE:ACA – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
88.1% of Arcosa shares are owned by institutional investors. 1.3% of Arcosa shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Taisei and Arcosa’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Taisei | N/A | N/A | N/A | $278.84 | 0.03 |
| Arcosa | $2.24 billion | 1.65 | $245.80 million | $5.77 | 13.23 |
Dividends
Taisei pays an annual dividend of $0.15 per share and has a dividend yield of 1.8%. Arcosa pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Taisei pays out 0.1% of its earnings in the form of a dividend. Arcosa pays out 3.5% 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. Taisei is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent recommendations for Taisei and Arcosa, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Taisei | 0 | 0 | 0 | 0 | N/A |
| Arcosa | 0 | 1 | 1 | 0 | 2.50 |
Arcosa has a consensus price target of $78.75, indicating a potential upside of 3.14%. Given Arcosa’s higher possible upside, analysts clearly believe Arcosa is more favorable than Taisei.
Profitability
This table compares Taisei and Arcosa’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Taisei | N/A | N/A | N/A |
| Arcosa | 12.47% | 6.52% | 4.09% |
Summary
Arcosa beats Taisei on 9 of the 12 factors compared between the two stocks.
About Taisei
Taisei Corporation engages in the civil engineering, construction contracts, and real estate development businesses in Japan. The company constructs offices, commercial facilities, factories, schools, hospitals, tunnels, bridges, dams, railways, expressways, etc.; and engineers production facilities and warehouses in the fields of pharmaceuticals, food products, and logistics. It is also involved in the redevelopment of projects, public-private partnership/private finance initiative projects, property management, and condominium sales projects. The company was formerly known as Nippon Doboku Corporation and changed its name to Taisei Corporation in 1946. Taisei Corporation was founded in 1873 and is headquartered in Tokyo, Japan.
About Arcosa
Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in North America. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment provides utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.
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