Analyzing Quanta Services (NYSE:PWR) and Metallurgical Corp. of China (OTCMKTS:MLLUY)

Quanta Services (NYSE:PWR) and Metallurgical Corp. of China (OTCMKTS:MLLUY) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Institutional & Insider Ownership

90.5% of Quanta Services shares are held by institutional investors. 1.1% of Quanta Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Quanta Services and Metallurgical Corp. of China”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quanta Services	$23.67 billion	2.45	$904.82 million	$6.46	60.36
Metallurgical Corp. of China	$76.79 billion	N/A	$938.36 million	$0.73	7.27

Metallurgical Corp. of China has higher revenue and earnings than Quanta Services. Metallurgical Corp. of China is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Quanta Services has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Metallurgical Corp. of China has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Quanta Services and Metallurgical Corp. of China, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quanta Services	0	12	13	0	2.52
Metallurgical Corp. of China	0	0	0	0	0.00

Quanta Services currently has a consensus target price of $397.18, indicating a potential upside of 1.86%. Given Quanta Services’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Quanta Services is more favorable than Metallurgical Corp. of China.

Dividends

Quanta Services pays an annual dividend of $0.40 per share and has a dividend yield of 0.1%. Metallurgical Corp. of China pays an annual dividend of $0.11 per share and has a dividend yield of 2.1%. Quanta Services pays out 6.2% of its earnings in the form of a dividend. Metallurgical Corp. of China pays out 15.1% 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. Quanta Services has raised its dividend for 6 consecutive years.

Profitability

This table compares Quanta Services and Metallurgical Corp. of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quanta Services	3.73%	18.41%	7.15%
Metallurgical Corp. of China	N/A	N/A	N/A

Summary

Quanta Services beats Metallurgical Corp. of China on 13 of the 16 factors compared between the two stocks.

About Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.

About Metallurgical Corp. of China

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company’s Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing properties; and develops land. The company’s Equipment Manufacturing segment engages in the development and production of metallurgical equipment, steel structures, and other metal products. Its Resource Development segment is involved in the development, mining, and processing of mineral resources; and the production of nonferrous metals and polysilicon. The company was founded in 2008 and is based in Beijing, the People’s Republic of China.