Primoris Services (PRIM) versus Its Competitors Financial Contrast

Primoris Services (NYSE:PRIM) is one of 188 publicly-traded companies in the “Construction & Engineering” industry, but how does it contrast to its competitors? We will compare Primoris Services to similar businesses based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, valuation, risk and dividends.

Profitability

This table compares Primoris Services and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primoris Services	1.92%	9.96%	3.67%
Primoris Services Competitors	-4.04%	2.60%	3.81%

Dividends

Primoris Services pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Primoris Services pays out 12.5% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 2.3% and pay out 25.4% of their earnings in the form of a dividend. Primoris Services has increased its dividend for 1 consecutive years.

Institutional and Insider Ownership

91.8% of Primoris Services shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Construction & Engineering” companies are owned by institutional investors. 1.1% of Primoris Services shares are owned by company insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are owned 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Primoris Services and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primoris Services	0	7	10	0	2.59
Primoris Services Competitors	842	3453	7327	356	2.60

Primoris Services presently has a consensus target price of $123.47, indicating a potential upside of 69.76%. As a group, “Construction & Engineering” companies have a potential upside of 43.01%. Given Primoris Services’ higher probable upside, analysts plainly believe Primoris Services is more favorable than its competitors.

Volatility and Risk

Primoris Services has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Primoris Services’ competitors have a beta of 1.57, meaning that their average share price is 57% more volatile than the S&P 500.

Earnings & Valuation

This table compares Primoris Services and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Primoris Services	$7.57 billion	$274.90 million	28.52
Primoris Services Competitors	$9.57 billion	$456.60 million	-5,802.76

Primoris Services’ competitors have higher revenue and earnings than Primoris Services. Primoris Services is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Primoris Services competitors beat Primoris Services on 9 of the 15 factors compared.

Primoris Services Company Profile

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.