Analyzing EMCOR Group (EME) and Grana y Montero S.A.A. (GRAM)
Grana y Montero S.A.A. (NYSE: GRAM) and EMCOR Group (NYSE:EME) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitabiliy, dividends, valuation and earnings.
Earnings and Valuation
This table compares Grana y Montero S.A.A. and EMCOR Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Grana y Montero S.A.A.||N/A||N/A||N/A||$0.03||103.67|
|EMCOR Group||$7.70 billion||0.50||$427.12 million||$3.28||19.75|
EMCOR Group has higher revenue and earnings than Grana y Montero S.A.A.. EMCOR Group is trading at a lower price-to-earnings ratio than Grana y Montero S.A.A., indicating that it is currently the more affordable of the two stocks.
EMCOR Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Grana y Montero S.A.A. does not pay a dividend. EMCOR Group pays out 9.8% of its earnings in the form of a dividend. EMCOR Group has raised its dividend for 5 consecutive years.
This table compares Grana y Montero S.A.A. and EMCOR Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grana y Montero S.A.A.||0.23%||0.43%||0.15%|
Insider and Institutional Ownership
12.9% of Grana y Montero S.A.A. shares are owned by institutional investors. Comparatively, 93.7% of EMCOR Group shares are owned by institutional investors. 2.0% of EMCOR 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.
This is a summary of current recommendations for Grana y Montero S.A.A. and EMCOR Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grana y Montero S.A.A.||2||0||0||0||1.00|
EMCOR Group has a consensus price target of $67.67, indicating a potential upside of 4.47%. Given EMCOR Group’s stronger consensus rating and higher possible upside, analysts clearly believe EMCOR Group is more favorable than Grana y Montero S.A.A..
Risk and Volatility
Grana y Montero S.A.A. has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, EMCOR Group has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
EMCOR Group beats Grana y Montero S.A.A. on 13 of the 15 factors compared between the two stocks.
About Grana y Montero S.A.A.
Grana y Montero SAA is a Peru-based holding company primarily engaged in the four business areas: Construction and Engineering Industry, Real Estate, Oil Services, and Operation of Public Concessions and Business Support Services. Through its subsidiaries, the Company provides such services as the development and management of real estate properties and leisure facilities; the exploration, production and sale of oil, natural gas and its derivates; the storage and distribution of combustibles; information technology services; engineering consultancy; the operation and maintenance of rails and roads concessions; as well as the execution and management of projects related to the generation of electric power; among others. The Company owns such subsidiaries as GMD SA, Adexus SA, Concar SA, Survial SA, Norvial SA and Promotores Asociados de Inmobiliarios SA, among others.
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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