Primoris Services Corporation (PRIM) & Quanta Services (PWR) Critical Survey
Primoris Services Corporation (NASDAQ: PRIM) and Quanta Services (NYSE:PWR) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitabiliy, valuation, institutional ownership, dividends, risk and earnings.
Earnings & Valuation
This table compares Primoris Services Corporation and Quanta Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Primoris Services Corporation||$2.13 billion||0.60||$136.03 million||$0.62||39.77|
|Quanta Services||$8.12 billion||0.62||$580.47 million||$1.47||22.45|
Quanta Services has higher revenue and earnings than Primoris Services Corporation. Quanta Services is trading at a lower price-to-earnings ratio than Primoris Services Corporation, indicating that it is currently the more affordable of the two stocks.
Primoris Services Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 0.9%. Quanta Services does not pay a dividend. Primoris Services Corporation pays out 35.5% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Primoris Services Corporation and Quanta Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Primoris Services Corporation||0||5||3||0||2.38|
Primoris Services Corporation presently has a consensus price target of $25.50, suggesting a potential upside of 3.41%. Quanta Services has a consensus price target of $40.00, suggesting a potential upside of 21.21%. Given Quanta Services’ stronger consensus rating and higher probable upside, analysts plainly believe Quanta Services is more favorable than Primoris Services Corporation.
Volatility and Risk
Primoris Services Corporation has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
This table compares Primoris Services Corporation and Quanta Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Primoris Services Corporation||1.49%||8.15%||3.56%|
Institutional and Insider Ownership
70.7% of Primoris Services Corporation shares are held by institutional investors. Comparatively, 89.6% of Quanta Services shares are held by institutional investors. 23.1% of Primoris Services Corporation shares are held by company insiders. Comparatively, 0.7% of Quanta Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Quanta Services beats Primoris Services Corporation on 11 of the 16 factors compared between the two stocks.
About Primoris Services Corporation
Primoris Services Corporation is a holding company. The Company holds various subsidiaries, through which it operates as a specialty contractor and infrastructure company. The Company provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to public utilities, petrochemical companies, energy companies, municipalities, state departments of transportation and other customers. It operates in three segments: the West Construction Services segment (West segment), the East Construction Services segment (East segment) and the Energy segment. The Company installs, replaces, repairs and rehabilitates natural gas, refined product, water and wastewater pipeline systems; large diameter gas and liquid pipeline facilities, and heavy civil projects, earthwork and site development.
About Quanta Services
Quanta Services, Inc. is a provider of specialty contracting services, offering infrastructure solutions primarily to the electric power and oil and gas industries in the United States, Canada and Australia and selected other international markets. The Company operates through two segments: Electric Power Infrastructure Services, which provides network solutions to customers in the electric power industry, and Oil and Gas Infrastructure Services, which provides network solutions to customers involved in the development and transportation of natural gas, oil and other pipeline products. The services it provides include the design, installation, upgrade, repair and maintenance of infrastructure within each of the industries it serves, such as electric power transmission and distribution networks, substation facilities, renewable energy facilities, pipeline transmission and distribution systems and facilities, and infrastructure services for the offshore and inland water energy markets.
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