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Comfort Systems vs. AECOM: Which Construction Stock to Pick?
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Key Takeaways
FIX backlog hit $8.12B in June 2025, up from $5.77B, driven by strong bookings and acquisitions.
ACM backlog reached $24.59B, supported by the U.K., Canada and the Middle East infrastructure demand.
FIX's 2025 EPS growth is projected at 52.4%, outpacing ACM's 15.9%, with ROE of 39.33% vs. 27.87%.
Firms like Comfort Systems USA, Inc. (FIX - Free Report) and AECOM (ACM - Free Report) operate and compete in the large-scale engineering, contracting and building systems services market. Due to the robust market trends backed by government initiatives worldwide, the demand for infrastructure and EPCM services has been a key highlight of the economy over the past few years.
Besides, the recent Fed rate cut, exercised on Sept. 17, 2025, is expected to bolster this favorable market trend further. The Federal Reserve pulled down its interest rate benchmark by 0.25 percentage points to the range of 4-4.25%, leaving room for optimism about two more rate cuts in the remainder of 2025. Lower financing costs are expected to spur investments in the large-scale projects across markets that are served by the companies mentioned above.
Comfort Systems primarily focuses on pursuing projects that are favorable for margin expansion and improved working conditions, resulting in long-term revenue visibility and backlog growth. Contrarily, AECOM is seeking infrastructure opportunities outside the U.S. borders amid increased public spending trends, mainly in key markets like Canada, the Middle East and the UK.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Comfort Systems Stock
This Texas-based mechanical and electrical contracting services provider, with a market capitalization of about $28.99 billion, is currently benefiting from strong industrial and technology-driven construction demand. The increasing exposure to large-scale projects highlights the company’s ability to capture growth across critical end markets and drive backlog growth. As of June 30, 2025, the backlog reached a record $8.12 billion compared with $5.77 billion a year earlier, reflecting strong booking momentum.
Besides a favorable market backdrop, FIX’s accretive buyout efforts are encouraging for its prospects. On May 31, 2025, the company acquired all of the issued and outstanding shares of capital stock of a mechanical service provider in New York, incorporating it into its mechanical segment. Additionally, on May 1, 2025, it completed the acquisition of Florida-based Right Way Plumbing & Mechanical LLC for a preliminary purchase price of $64.8 million. This strategic transaction of the plumbing installation and maintenance services provider in the Southeastern United States fits perfectly well for Comfort Systems to expand its market share. Right Way Plumbing is also included under its mechanical segment and per FIX, it is expected to contribute $60-$70 million annually in revenues.
During the second-quarter 2025 earnings, the company highlighted a five-cent increase in its quarterly dividend to 50 cents per share ($2.00 per share annually). The investors’ sentiments are staying elevated concerning this company, as it is not only boosting its business growth but also ensuring to provide shareholder value.
Despite the uncertainties surrounding the new tariff regime, FIX is well-positioned to capitalize on the market tailwinds and its in-house efforts to boost its long-term growth. Moreover, the recent easing of the Fed interest rates is the cherry on the cake. As manufacturers expand capacity and institutional markets like healthcare and technology remain resilient, Comfort Systems is well-positioned to capture complex, large-scale projects and continue on the path of growth.
The Case for AECOM Stock
This Texas-based professional, technical and management solutions provider, with a market capitalization of approximately $17.61 billion, is currently capitalizing on robust infrastructure demand within as well as outside the borders, including international markets like the United Kingdom, Canada, the UAE and Asia. During the first nine months of fiscal 2025, NSR grew 6% on an adjusted basis to $1.938 billion, with NSR in the Americas and International segments growing year over year by 8% and 3%, respectively. As of the third quarter of fiscal 2025, the total backlog was $24.59 billion, up 5% from $23.36 billion reported in the prior-year period.
The recent 10-year infrastructure strategy announcement by the U.K. government highlights investments of GBP 725 billion across key sectors, including transportation, water and energy, reflecting heightened opportunities for the company in the upcoming term. Moreover, in the Middle East, AECOM successfully managed to align its opportunities with the shifts in investment priorities for infrastructure development for the World Expo and World Cup in Saudi Arabia. With Canada’s aim of prioritizing public infrastructure projects 60% quicker, alongside long-term demand drivers remaining firm across Australian and Asian markets, the company is positioned to capitalize on these tailwinds in the near and long term.
Moreover, AECOM is witnessing growth opportunities in key market segments, including AI (with data centers taking the major share), water, transportation, aviation, coastal protection and electricity. It believes that by 2030, U.S. data center investments will likely triple. The recent passing of the One Big Beautiful Bill Act has acted as a catalyst for the ongoing market trends. The act highlights tax incentives like bonus depreciation across infrastructure investments and allocates about $150 billion of mandatory defense spending, and the Department of Defense, being AECOM’s crucial client, opens up new revenue opportunities for it.
The pros of international market exposure are being discussed, but this also holds cons for AECOM in the form of alterations in governments’ trade policies, regulatory practices, tariffs and taxes. Moreover, as AECOM’s majority of revenues come from government projects, there are always accumulated risks related to funding decline, changes in initiatives and regulatory restrictions.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, Comfort Systems’ share price performance stands significantly above AECOM’s and the broader Construction sector.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Comfort Systems has been trading above AECOM on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that FIX stock offers an incremental growth trend at a premium valuation, while the ACM stock offers a slow growth trend with a discounted valuation.
Comparing EPS Estimate Trends: FIX vs. ACM
The Zacks Consensus Estimate for FIX’s 2025 EPS indicates 52.4% year-over-year growth, with the 2026 estimate indicating an increase of 9.9%. The 2025 and 2026 EPS estimates have trended upward over the past 30 days, depicting analysts’ optimism about the stock.
FIX's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ACM’s fiscal 2025 earnings implies year-over-year growth of 15.9%, and the same for 2026 indicates an improvement of 9.8%. Its 2025 and 2026 EPS estimates have trended upward over the past 60 days.
ACM's EPS Trend
Image Source: Zacks Investment Research
Return on Equity (ROE) of FIX & ACM Stocks
Comfort Systems’ trailing 12-month ROE of 39.33% significantly exceeds AECOM’s average of 27.87%, underscoring its efficiency in generating shareholder returns.
Image Source: Zacks Investment Research
Which Stock to Pick: FIX or ACM?
Comfort Systems and AECOM are poised to benefit from favorable industry trends, including heightened infrastructure spending and lower financing costs following the Federal Reserve’s recent September 2025 rate cut. Yet, their fundamentals and near-term growth trajectories diverge.
Comfort Systems, which currently sports a Zacks Rank #1 (Strong Buy), highlights a robust booking momentum, with recent acquisitions, including Right Way Plumbing, expanding its footprint in mechanical and plumbing services. Moreover, with EPS estimates trending higher and boasting a superior trailing 12-month ROE, it highlights operational efficiency.
On the other hand, AECOM, which currently carries a Zacks Rank #3 (Hold), benefits from global infrastructure opportunities, particularly in the UK, Canada and the Middle East. However, heavy reliance on government spending and exposure to international regulatory risks pose challenges. EPS growth expectations are positive but more moderate compared to FIX.
While both firms are well-positioned in a favorable macro backdrop, FIX’s strong execution, record backlog, higher ROE and upward-trending estimates make it a better investment opportunity over ACM.
Image: Bigstock
Comfort Systems vs. AECOM: Which Construction Stock to Pick?
Key Takeaways
Firms like Comfort Systems USA, Inc. (FIX - Free Report) and AECOM (ACM - Free Report) operate and compete in the large-scale engineering, contracting and building systems services market. Due to the robust market trends backed by government initiatives worldwide, the demand for infrastructure and EPCM services has been a key highlight of the economy over the past few years.
Besides, the recent Fed rate cut, exercised on Sept. 17, 2025, is expected to bolster this favorable market trend further. The Federal Reserve pulled down its interest rate benchmark by 0.25 percentage points to the range of 4-4.25%, leaving room for optimism about two more rate cuts in the remainder of 2025. Lower financing costs are expected to spur investments in the large-scale projects across markets that are served by the companies mentioned above.
Comfort Systems primarily focuses on pursuing projects that are favorable for margin expansion and improved working conditions, resulting in long-term revenue visibility and backlog growth. Contrarily, AECOM is seeking infrastructure opportunities outside the U.S. borders amid increased public spending trends, mainly in key markets like Canada, the Middle East and the UK.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Comfort Systems Stock
This Texas-based mechanical and electrical contracting services provider, with a market capitalization of about $28.99 billion, is currently benefiting from strong industrial and technology-driven construction demand. The increasing exposure to large-scale projects highlights the company’s ability to capture growth across critical end markets and drive backlog growth. As of June 30, 2025, the backlog reached a record $8.12 billion compared with $5.77 billion a year earlier, reflecting strong booking momentum.
Besides a favorable market backdrop, FIX’s accretive buyout efforts are encouraging for its prospects. On May 31, 2025, the company acquired all of the issued and outstanding shares of capital stock of a mechanical service provider in New York, incorporating it into its mechanical segment. Additionally, on May 1, 2025, it completed the acquisition of Florida-based Right Way Plumbing & Mechanical LLC for a preliminary purchase price of $64.8 million. This strategic transaction of the plumbing installation and maintenance services provider in the Southeastern United States fits perfectly well for Comfort Systems to expand its market share. Right Way Plumbing is also included under its mechanical segment and per FIX, it is expected to contribute $60-$70 million annually in revenues.
During the second-quarter 2025 earnings, the company highlighted a five-cent increase in its quarterly dividend to 50 cents per share ($2.00 per share annually). The investors’ sentiments are staying elevated concerning this company, as it is not only boosting its business growth but also ensuring to provide shareholder value.
Despite the uncertainties surrounding the new tariff regime, FIX is well-positioned to capitalize on the market tailwinds and its in-house efforts to boost its long-term growth. Moreover, the recent easing of the Fed interest rates is the cherry on the cake. As manufacturers expand capacity and institutional markets like healthcare and technology remain resilient, Comfort Systems is well-positioned to capture complex, large-scale projects and continue on the path of growth.
The Case for AECOM Stock
This Texas-based professional, technical and management solutions provider, with a market capitalization of approximately $17.61 billion, is currently capitalizing on robust infrastructure demand within as well as outside the borders, including international markets like the United Kingdom, Canada, the UAE and Asia. During the first nine months of fiscal 2025, NSR grew 6% on an adjusted basis to $1.938 billion, with NSR in the Americas and International segments growing year over year by 8% and 3%, respectively. As of the third quarter of fiscal 2025, the total backlog was $24.59 billion, up 5% from $23.36 billion reported in the prior-year period.
The recent 10-year infrastructure strategy announcement by the U.K. government highlights investments of GBP 725 billion across key sectors, including transportation, water and energy, reflecting heightened opportunities for the company in the upcoming term. Moreover, in the Middle East, AECOM successfully managed to align its opportunities with the shifts in investment priorities for infrastructure development for the World Expo and World Cup in Saudi Arabia. With Canada’s aim of prioritizing public infrastructure projects 60% quicker, alongside long-term demand drivers remaining firm across Australian and Asian markets, the company is positioned to capitalize on these tailwinds in the near and long term.
Moreover, AECOM is witnessing growth opportunities in key market segments, including AI (with data centers taking the major share), water, transportation, aviation, coastal protection and electricity. It believes that by 2030, U.S. data center investments will likely triple. The recent passing of the One Big Beautiful Bill Act has acted as a catalyst for the ongoing market trends. The act highlights tax incentives like bonus depreciation across infrastructure investments and allocates about $150 billion of mandatory defense spending, and the Department of Defense, being AECOM’s crucial client, opens up new revenue opportunities for it.
The pros of international market exposure are being discussed, but this also holds cons for AECOM in the form of alterations in governments’ trade policies, regulatory practices, tariffs and taxes. Moreover, as AECOM’s majority of revenues come from government projects, there are always accumulated risks related to funding decline, changes in initiatives and regulatory restrictions.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, Comfort Systems’ share price performance stands significantly above AECOM’s and the broader Construction sector.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Comfort Systems has been trading above AECOM on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that FIX stock offers an incremental growth trend at a premium valuation, while the ACM stock offers a slow growth trend with a discounted valuation.
Comparing EPS Estimate Trends: FIX vs. ACM
The Zacks Consensus Estimate for FIX’s 2025 EPS indicates 52.4% year-over-year growth, with the 2026 estimate indicating an increase of 9.9%. The 2025 and 2026 EPS estimates have trended upward over the past 30 days, depicting analysts’ optimism about the stock.
FIX's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ACM’s fiscal 2025 earnings implies year-over-year growth of 15.9%, and the same for 2026 indicates an improvement of 9.8%. Its 2025 and 2026 EPS estimates have trended upward over the past 60 days.
ACM's EPS Trend
Image Source: Zacks Investment Research
Return on Equity (ROE) of FIX & ACM Stocks
Comfort Systems’ trailing 12-month ROE of 39.33% significantly exceeds AECOM’s average of 27.87%, underscoring its efficiency in generating shareholder returns.
Image Source: Zacks Investment Research
Which Stock to Pick: FIX or ACM?
Comfort Systems and AECOM are poised to benefit from favorable industry trends, including heightened infrastructure spending and lower financing costs following the Federal Reserve’s recent September 2025 rate cut. Yet, their fundamentals and near-term growth trajectories diverge.
Comfort Systems, which currently sports a Zacks Rank #1 (Strong Buy), highlights a robust booking momentum, with recent acquisitions, including Right Way Plumbing, expanding its footprint in mechanical and plumbing services. Moreover, with EPS estimates trending higher and boasting a superior trailing 12-month ROE, it highlights operational efficiency.
On the other hand, AECOM, which currently carries a Zacks Rank #3 (Hold), benefits from global infrastructure opportunities, particularly in the UK, Canada and the Middle East. However, heavy reliance on government spending and exposure to international regulatory risks pose challenges. EPS growth expectations are positive but more moderate compared to FIX.
While both firms are well-positioned in a favorable macro backdrop, FIX’s strong execution, record backlog, higher ROE and upward-trending estimates make it a better investment opportunity over ACM.
You can see the complete list of today’s Zacks #1 Rank stocks here.