Construction Partners (NASDAQ:ROAD) and Aenza S.A.A. (NYSE:AENZ) are both small-cap construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Institutional & Insider Ownership
64.8% of Construction Partners shares are owned by institutional investors. Comparatively, 8.9% of Aenza S.A.A. shares are owned by institutional investors. 63.9% of Construction Partners shares are owned by company insiders. Comparatively, 27.4% of Aenza S.A.A. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Construction Partners and Aenza S.A.A.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Construction Partners has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Aenza S.A.A. has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Construction Partners and Aenza S.A.A., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Construction Partners presently has a consensus price target of $23.00, suggesting a potential downside of 32.89%. Given Construction Partners’ higher possible upside, equities analysts plainly believe Construction Partners is more favorable than Aenza S.A.A..
Earnings and Valuation
This table compares Construction Partners and Aenza S.A.A.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Construction Partners||$783.24 million||2.27||$43.12 million||$0.84||40.80|
|Aenza S.A.A.||$1.22 billion||0.34||-$265.15 million||N/A||N/A|
Construction Partners has higher earnings, but lower revenue than Aenza S.A.A..
Construction Partners beats Aenza S.A.A. on 10 of the 11 factors compared between the two stocks.
About Construction Partners
Construction Partners, Inc., a civil infrastructure company, engages in the construction and maintenance of roadways across Alabama, Florida, Georgia, North Carolina, and South Carolina. The company, through its subsidiaries, provides various products and services to public and private infrastructure projects, with a focus on highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; paving activities, including the construction of roadway base layers and application of asphalt pavement; site development, including the installation of utility and drainage systems; mining aggregates, such as sand and gravel that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2001 and is headquartered in Dothan, Alabama.
About Aenza S.A.A.
Aenza S.A.A., together with its subsidiaries, engages in engineering and construction, infrastructure, and real estate businesses in Peru, Chile, and Colombia. The company operates through three segments: Engineering and Construction; Infrastructure; and Real Estate. The Engineering and Construction segment provides traditional engineering services, such as structural, civil, and design engineering; and services ranging from architectural planning to advanced specialties comprising process design, simulation, and environmental services. This segment also provides services related to civil works, which include construction of hydroelectric power stations and other large infrastructure facilities; electro mechanic construction, such as concentrator plants, oil and natural gas pipelines, and transmission lines; and building construction comprising office and residential buildings, hotels, affordable housing projects, shopping centers, and industrial facilities. It serves mining, power, oil and gas, transportation, and infrastructure development companies. The Infrastructure segment offers long-term concessions or similar contractual arrangements in Peru for three toll roads, the Lima Metro, a waste water treatment plant in Lima, four producing oil fields, and a gas processing plant, as well as maintenance services for infrastructure assets. The Real Estate segment develops and sells homes, and office and commercial space. The company was formerly known as GraÃ±a y Montero S.A.A. and changed its name to Aenza S.A.A. in November 2020. Aenza S.A.A. was founded in 1933 and is based in Surquillo, Peru.
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