Analyzing Granite Construction (GVA) and EMCOR Group (EME)
Granite Construction (NYSE: GVA) and EMCOR Group (NYSE:EME) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
Volatility & Risk
Granite Construction has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, EMCOR Group has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Insider and Institutional Ownership
98.6% of Granite Construction shares are held by institutional investors. Comparatively, 93.9% of EMCOR Group shares are held by institutional investors. 1.3% of Granite Construction shares are held by insiders. Comparatively, 2.0% of EMCOR Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Granite Construction and EMCOR Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Granite Construction presently has a consensus target price of $66.43, indicating a potential upside of 2.10%. EMCOR Group has a consensus target price of $80.50, indicating a potential upside of 1.76%. Given Granite Construction’s stronger consensus rating and higher probable upside, equities analysts plainly believe Granite Construction is more favorable than EMCOR Group.
This table compares Granite Construction and EMCOR Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.8%. EMCOR Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Granite Construction pays out 39.7% of its earnings in the form of a dividend. EMCOR Group pays out 8.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. EMCOR Group has raised its dividend for 5 consecutive years.
Earnings & Valuation
This table compares Granite Construction and EMCOR Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Granite Construction||$2.51 billion||1.03||$57.12 million||$1.31||49.66|
|EMCOR Group||$7.55 billion||0.62||$181.93 million||$3.58||22.10|
EMCOR Group has higher revenue and earnings than Granite Construction. EMCOR Group is trading at a lower price-to-earnings ratio than Granite Construction, indicating that it is currently the more affordable of the two stocks.
EMCOR Group beats Granite Construction on 9 of the 17 factors compared between the two stocks.
About Granite Construction
Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. The Company operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.
About EMCOR Group
EMCOR Group, Inc. is an electrical and mechanical construction, and facilities services firm in the United States. The Company provides building services and industrial services. Its segments are United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services, and United Kingdom building services. As of December 31, 2016, its services were provided to a range of commercial, industrial, utility and institutional customers through approximately 75 operating subsidiaries and joint venture entities. It is providing construction services relating to electrical and mechanical systems in various types of non-residential and certain residential facilities, and in providing services relating to the operation, maintenance and management of facilities, including refineries and petrochemical plants. It operates various electrical and mechanical systems.
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