Critical Contrast: MYR Group (NASDAQ:MYRG) and Energy Services of America (NASDAQ:ESOA)

MYR Group (NASDAQ:MYRG) and Energy Services of America (NASDAQ:ESOA) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and price targets for MYR Group and Energy Services of America, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MYR Group	0	4	2	2	2.75
Energy Services of America	0	1	1	0	2.50

MYR Group presently has a consensus price target of $451.20, indicating a potential upside of 54.91%. Energy Services of America has a consensus price target of $25.00, indicating a potential upside of 119.68%. Given Energy Services of America’s higher probable upside, analysts clearly believe Energy Services of America is more favorable than MYR Group.

Insider and Institutional Ownership

88.9% of MYR Group shares are held by institutional investors. Comparatively, 2.1% of Energy Services of America shares are held by institutional investors. 1.9% of MYR Group shares are held by company insiders. Comparatively, 44.7% of Energy Services of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares MYR Group and Energy Services of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MYR Group	4.13%	24.17%	9.96%
Energy Services of America	N/A	N/A	N/A

Earnings and Valuation

This table compares MYR Group and Energy Services of America”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MYR Group	$3.66 billion	1.24	$118.42 million	$10.54	27.63
Energy Services of America	$467.37 million	N/A	N/A	$0.18	62.19

MYR Group has higher revenue and earnings than Energy Services of America. MYR Group is trading at a lower price-to-earnings ratio than Energy Services of America, indicating that it is currently the more affordable of the two stocks.

Summary

MYR Group beats Energy Services of America on 9 of the 12 factors compared between the two stocks.

About MYR Group

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, clean energy projects, and electric vehicle charging infrastructure services, as well as emergency restoration services in response to hurricane, wildfire, ice, or other related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of intelligent transportation systems, roadway lighting, and signalization for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers. The company was founded in 1891 and is headquartered in Thornton, Colorado.

About Energy Services of America

Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.