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Construction companies are one of the most underrated and overlooked companies. Yet they offer high growth potential and a huge opportunity to 10X your investment. But you probably never see them in the news headlines because not many understand what they do.
If you are an engineer, you can understand those businesses quickly, but even if you do not have experience in this industry, you can understand those businesses with some education. We have extensively discussed this subject, and you can see our ultimate guide on Why Invest In Construction Companies? Civil Engineer Opinion to learn how to analyse construction companies.
Although this list has the best companies in this space, they are not always trading at an attractive price to buy. The investor should analyse the business fundamental and ensure that it is trading below its intrinsic value; for further help, check our guide on value investing.
Disclaimer: As a value investor, you should do your due diligence before investing in any stock. This list is intended to educate more than influence investment decisions. If you are unsure about your finances, you should consult a financial advisor before buying or making any investment decisions. We are not responsible for any losses in the market.
The following are the top 9 construction and engineering companies ranked by their market cap.
1- Caterpillar (CAT)
Caterpillar | Description |
---|---|
Headquarters | Deerfield, Illinois, United States |
Type | Construction equipment manufacturer |
Market Value | $100.4 Billion |
Employees | 102,300 |
Founded | 1925 |
P/E Ratio | 15.23 |
Caterpillar is the world’s largest construction equipment manufacturer and is listed in the fortune 500 US companies and part of the Dow Jones Industrial Average. Even if you have not worked in the construction industry, chances are you have seen Caterpillar machines. With a century of innovating in construction machining and equipment, giving them a strong competitive advantage in this space with annual revenue of $50.97 billion and a net income of $6.49 billion, which is 12.73% net profit.
2- Vinci SA (DG)
Vinci SA | Description |
---|---|
Headquarters | Paris, France |
Type | Construction, renewable energy & nuclear |
Market Value | $49.92 Billion |
Employees | 115,000 |
Founded | 1899 |
P/E Ratio | 12.9 |
Vinci is of the biggest construction companies outside china in terms of scale and technical capability and the biggest concession developer in the world. Vinci has grown so big by accruing successful construction and engineering companies. Vinci has $49.52 billion in revenue with a net income of $2.56 billion and a profit margin of %5.17.
3- Autodesk (ADSK)
Autodesk | Description |
---|---|
Headquarters | San Rafael, California, United States |
Type | Software products & Services |
Market Value | $43.47 Billion |
Employees | 12,600 |
Founded | 1982 |
P/E Ratio | 79.37 |
Autodesk is the leader in computer-aided design software with a plethora of design and engineering software, not just in the civil engineering space but in almost every engineering field. It started with its iconic AutoCAD software and has grown to provide specialised design software for different types of engineering applications. Its income comes from selling software subscriptions, with annual revenue of $4.39 billion and a net income of $497 million (11.3%).
4- Nucor Corporation (NUE)
Description | |
---|---|
Headquarters | Charlotte, North Carolina, United States |
Type | Steel producer |
Market Value | $35.5 Billion |
Employees | 27,000 |
Founded | 1940 |
P/E Ratio | 4.14 |
Nucor is the largest steel producer in the US, the biggest recycler of scrap in North America, and the 14th largest steel producer in the world, with annual revenue of $36.48 billion and income of $6.38 billion, which is 18% in profit margin.
5- Larsen & Toubro (LT)
Larsen & Toubro | Description |
---|---|
Headquarters | Mumbai, India |
Type | Construction & Manufacturing |
Market Value | $31.9 Billion |
Employees | 337,994 |
Founded | 1938 |
P/E Ratio | 28.66 |
The biggest construction company in India, and it is one of the biggest construction companies in the world. It has construction, mining, and infrastructure technology capabilities, with a revenue of $19 billion and a net profit margin of 5.46%.
6- Quanta Services (PWR)
Nucor Corporation | Description |
---|---|
Headquarters | Houston, Texas, United States |
Type | Electrical Services |
Market Value | Billion |
Employees | $19.08 Billion |
Founded | 1997 |
P/E Ratio | 43.3 |
Quanta provides infrastructure services for electrical power. Its capability includes the design, installation and maintenance of electrical services with annual revenue of $12.98B and a net profit of $485.96 million, which is a 3.75% profit margin.
7-WSP Global (WSP)
WSP | Description |
---|---|
Headquarters | Montreal, Canada |
Type | Design |
Market Value | $14.05 Billion |
Employees | 47,000 |
Founded | 1885 |
P/E Ratio | 40.5 |
WSP is a Canadian design, consulting and management company. Known for its technical expertise in transportation, infrastructure, building, environmental and mining, with annual revenue of $7.54 billion and a net profit margin of 4.61%, which yields a net income of $347.23 million.
8- AECOM (ACM)
AECOM | Description |
---|---|
Headquarters | Dallas, Texas, United States |
Type | Design |
Market Value | $10.57 Billion |
Employees | 51,000 |
Founded | 2012 |
P/E Ratio | 34.26 |
Aecom is one of the biggest consulting engineering companies in construction. It specialises in design and building information modelling, with a presence in more than 150 countries. It is also listed in the fortune 500 US companies with an annual review of $13.34 billion and a net income of $173.19 million.
9- Arcadis NV (ARCAD)
Arcadis | Description |
---|---|
Headquarters | Amsterdam, Netherlands |
Type | Design |
Market Value | $2.13 Billion |
Employees | 27,875 |
Founded | 1888 |
P/E Ratio | 16.71 |
Arcadis is a global design company in 70 countries and major cities. Arcadis is famous for its sustainable and challenging engineering design and expertise, with annual revenue of $2.48 billion and a net income of $123.08 million (4.97%).