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STN vs. UMAC: Which Infrastructure Innovator Has More Upside?
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Key Takeaways
UMAC's 1Q25 revenues jumped 59% Y/Y, supported by drone demand and U.S.-based manufacturing.
STN's Q1 net revenues rose 13.3% Y/Y, with organic growth across the U.S., Canada and international markets.
STN trades at 5.96X P/B vs. UMAC's 19.21X, offering a far cheaper valuation despite robust performance.
Both Unusual Machines (UMAC - Free Report) and Stantec (STN - Free Report) ) are engineering-focused companies innovating within the infrastructure and industrial tech space. Unusual Machines is a drone company manufacturing aerial platforms for industrial and commercial usage. Stantec is a global design and engineering firm specializing in infrastructure, environmental consulting and urban planning.
This comparative analysis will help investors assess the current situation of these companies, thereby finding the stock that will provide greater upside.
The Case for Unusual Machines
The U.S. Drone market is projected to grow, seeing a CAGR of 12.5% from 2024 to 2033. This expanding market is highly beneficial to UMAC’s growth as the demand for high-tech aerial systems surges. UMAC is well-positioned to capitalize on its sole motive to manufacture in the United States, as the National Defense Authorization Act (“NDAA”) and Blue UAS Framework hugely favor domestic manufacturers.
There is no denying the fact that the company operates in a nascent market; despite that, the company registered promising results in the first quarter of 2025, with its top line soaring 59% year over year. The company’s gross margin stood at 24% despite the tariff hit, displaying UMAC’s cost optimization ability.
Unusual Machines is blessed with the government initiatives aligning with its motive. The recent introduction of the Drones for America Act positions the company to benefit from growing contract wins in the defense sector, as this act intends to ban drone components from China by 2028. Thanks to the competitive edge provided by the existing NDAA and Blue UAS compliance, UMAC’s 17,000-square-foot drone motor production facility is proving worthwhile, with deliveries commencing in September 2025.
However, Unusual Machines’ net loss of $3.3 million and operating cash outflow of $1.2 million in the first quarter of 2025 are concerning. Given this backdrop, investors may not be sold on UMAC’s aspiration of reaching the positive cash flow mark in the upcoming four to six quarters.
The Case for Stantec
STN is thriving due to the growing demand for its infrastructure, water security and climate-resilient solutions. The company’s growth is fueled by the increasing focus on smart cities and surging infrastructure investments. In the first quarter of 2025, STN registered 13.3% year-over-year growth in its net revenues. Barring buyouts and currency tailwinds, organic revenues increased 5.9%. Robust building activity, environmental services and infrastructure segments drove organic growth in the United States by 2.4% year over year.
Stantec witnessed 15% year-over-year growth in revenues in Canada. This was primarily driven by wastewater projects, industrial developments, rail initiatives and airport work in Quebec and Alberta. There was a 20% revenue increase in the U.K. water business, and Australia and New Zealand benefited from energy transition projects and public sector funding. Germany’s €500-billion infrastructure fund positions STN in a better position to penetrate the market.
STN has portrayed itself as highly efficient in the infrastructure and industrial tech domain by showcasing robust margin expansion, led by strong execution and favorable project mix. With project margins growing 10 basis points (bps) year over year and the adjusted EBITDA margin improving 70 bps, STN displayed higher-margin work in Infrastructure, and Energy & Resources while controlling costs judiciously.
How Do Estimates Compare for UMAC & STN?
The Zacks Consensus Estimate for Unusual Machines’ 2025 sales is set at $10.4 million, indicating an 86.5% year-over-year surge. The consensus estimate for loss is pegged at 36 cents per share, whereas it incurred a loss of 69 cents per share in the year-ago period. There has been no change in analyst estimates or revisions lately.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Stantec’s 2025 sales is pegged at $4.8 billion, indicating 11.4% year-over-year growth. The consensus estimate for earnings is $3.86 per share, suggesting a 19.5% year-over-year rally. There has been no change in analyst estimates or revisions lately. One estimate for 2025 has moved north in the past 60 days versus no southward revisions.
Image Source: Zacks Investment Research
STN Trades Cheaper Than UMAC
Stantec is currently trading at a trailing 12-month price-to-book to book ratio of 5.96X, which is slightly above the 12-month median of 5.64X. Unusual Machines is trading at 19.21X, higher than the 12-month median of 6.95X. Although both stocks are trading at a premium compared with their historical valuations, Stantec appears way cheaper than UMAC.
Image Source: Zacks Investment Research
Verdict
Stantec is a buy, fueled by its growing global infrastructure business and exemplary margin performance that ensures cost effectiveness while maintaining a high project margin. Meanwhile, UMAC, despite its strong sales and U.S.-first strategy, is a hold due to its premium valuation.
Alternatively, STN is substantially cheaper than UMAC, providing ample room for growth for investors.
Image: Bigstock
STN vs. UMAC: Which Infrastructure Innovator Has More Upside?
Key Takeaways
Both Unusual Machines (UMAC - Free Report) and Stantec (STN - Free Report) ) are engineering-focused companies innovating within the infrastructure and industrial tech space. Unusual Machines is a drone company manufacturing aerial platforms for industrial and commercial usage. Stantec is a global design and engineering firm specializing in infrastructure, environmental consulting and urban planning.
This comparative analysis will help investors assess the current situation of these companies, thereby finding the stock that will provide greater upside.
The Case for Unusual Machines
The U.S. Drone market is projected to grow, seeing a CAGR of 12.5% from 2024 to 2033. This expanding market is highly beneficial to UMAC’s growth as the demand for high-tech aerial systems surges. UMAC is well-positioned to capitalize on its sole motive to manufacture in the United States, as the National Defense Authorization Act (“NDAA”) and Blue UAS Framework hugely favor domestic manufacturers.
There is no denying the fact that the company operates in a nascent market; despite that, the company registered promising results in the first quarter of 2025, with its top line soaring 59% year over year. The company’s gross margin stood at 24% despite the tariff hit, displaying UMAC’s cost optimization ability.
Unusual Machines is blessed with the government initiatives aligning with its motive. The recent introduction of the Drones for America Act positions the company to benefit from growing contract wins in the defense sector, as this act intends to ban drone components from China by 2028. Thanks to the competitive edge provided by the existing NDAA and Blue UAS compliance, UMAC’s 17,000-square-foot drone motor production facility is proving worthwhile, with deliveries commencing in September 2025.
However, Unusual Machines’ net loss of $3.3 million and operating cash outflow of $1.2 million in the first quarter of 2025 are concerning. Given this backdrop, investors may not be sold on UMAC’s aspiration of reaching the positive cash flow mark in the upcoming four to six quarters.
The Case for Stantec
STN is thriving due to the growing demand for its infrastructure, water security and climate-resilient solutions. The company’s growth is fueled by the increasing focus on smart cities and surging infrastructure investments. In the first quarter of 2025, STN registered 13.3% year-over-year growth in its net revenues. Barring buyouts and currency tailwinds, organic revenues increased 5.9%. Robust building activity, environmental services and infrastructure segments drove organic growth in the United States by 2.4% year over year.
Stantec witnessed 15% year-over-year growth in revenues in Canada. This was primarily driven by wastewater projects, industrial developments, rail initiatives and airport work in Quebec and Alberta. There was a 20% revenue increase in the U.K. water business, and Australia and New Zealand benefited from energy transition projects and public sector funding. Germany’s €500-billion infrastructure fund positions STN in a better position to penetrate the market.
STN has portrayed itself as highly efficient in the infrastructure and industrial tech domain by showcasing robust margin expansion, led by strong execution and favorable project mix. With project margins growing 10 basis points (bps) year over year and the adjusted EBITDA margin improving 70 bps, STN displayed higher-margin work in Infrastructure, and Energy & Resources while controlling costs judiciously.
How Do Estimates Compare for UMAC & STN?
The Zacks Consensus Estimate for Unusual Machines’ 2025 sales is set at $10.4 million, indicating an 86.5% year-over-year surge. The consensus estimate for loss is pegged at 36 cents per share, whereas it incurred a loss of 69 cents per share in the year-ago period. There has been no change in analyst estimates or revisions lately.
The Zacks Consensus Estimate for Stantec’s 2025 sales is pegged at $4.8 billion, indicating 11.4% year-over-year growth. The consensus estimate for earnings is $3.86 per share, suggesting a 19.5% year-over-year rally. There has been no change in analyst estimates or revisions lately. One estimate for 2025 has moved north in the past 60 days versus no southward revisions.
STN Trades Cheaper Than UMAC
Stantec is currently trading at a trailing 12-month price-to-book to book ratio of 5.96X, which is slightly above the 12-month median of 5.64X. Unusual Machines is trading at 19.21X, higher than the 12-month median of 6.95X. Although both stocks are trading at a premium compared with their historical valuations, Stantec appears way cheaper than UMAC.
Verdict
Stantec is a buy, fueled by its growing global infrastructure business and exemplary margin performance that ensures cost effectiveness while maintaining a high project margin. Meanwhile, UMAC, despite its strong sales and U.S.-first strategy, is a hold due to its premium valuation.
Alternatively, STN is substantially cheaper than UMAC, providing ample room for growth for investors.
STN currently carries a Zacks Rank #2 (Buy) and UMAC has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.