Pike Corp (NYSE: PIKE) and MYR Group (NASDAQ:MYRG) are both small-cap smart grid & power distribution construction companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk and Volatility

Pike Corp has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, MYR Group has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Insider & Institutional Ownership

87.6% of MYR Group shares are owned by institutional investors. 5.0% of MYR Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Pike Corp and MYR Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pike Corp N/A N/A N/A
MYR Group 1.12% 5.76% 2.66%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pike Corp and MYR Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pike Corp 0 0 0 0 N/A
MYR Group 0 4 2 0 2.33

MYR Group has a consensus target price of $31.75, suggesting a potential downside of 5.05%. Given MYR Group’s higher possible upside, analysts clearly believe MYR Group is more favorable than Pike Corp.

Valuation and Earnings

This table compares Pike Corp and MYR Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pike Corp N/A N/A N/A $0.32 37.53
MYR Group $1.14 billion 0.48 $21.43 million $0.93 35.96

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

Summary

MYR Group beats Pike Corp on 9 of the 10 factors compared between the two stocks.

Pike Corp Company Profile

Pike Corporation is a provider of construction and engineering services for investor-owned, municipal and co-operative electric utilities in the United States. The Company’s suite of energy and communication solutions includes facilities planning and siting, permitting, engineering, design, installation, maintenance and repair of power delivery systems, including utility-grade solar construction projects and storm-related services. The Company operates in two segments: construction and engineering. On January 1, 2014, Synergetic Design Holdings, Inc. merged with and into Pike Enterprises, Inc., a wholly owned subsidiary of the Company, and UC Synergetic, Inc. (UCS) merged with and into Pike Energy Solutions, LLC (PES), the surviving entity of which was named UC Synergetic, LLC.

MYR Group Company Profile

MYR Group Inc. is a holding company. The Company, through its subsidiaries, provides specialty electrical construction services. The Company performs construction services in two segments: Transmission and Distribution (T&D), and Commercial and Industrial (C&I). The Company provides C&I electrical contracting services to general contractors, commercial and industrial facility owners, local governments and developers in the western and northeastern United States and western Canada. The Company’s T&D segment serves the T&D sector of the electric utility industry. The Company provides a range of services on electric transmission and distribution networks and substation facilities, such as design, engineering, procurement, construction and upgrade. The Company’s C&I segment provides services, such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting.

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