USD Partners (NYSE: USDP) and Quanta Services (NYSE:PWR) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Valuation & Earnings

This table compares USD Partners and Quanta Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USD Partners $110.04 million 2.23 $55.88 million $1.23 8.54
Quanta Services $8.52 billion 0.62 $655.04 million $1.77 19.11

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for USD Partners and Quanta Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USD Partners 1 1 2 0 2.25
Quanta Services 0 3 6 0 2.67

USD Partners currently has a consensus target price of $16.00, indicating a potential upside of 52.38%. Quanta Services has a consensus target price of $41.57, indicating a potential upside of 22.88%. Given USD Partners’ higher probable upside, equities research analysts plainly believe USD Partners is more favorable than Quanta Services.

Volatility & Risk

USD Partners has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Dividends

USD Partners pays an annual dividend of $1.36 per share and has a dividend yield of 13.0%. Quanta Services does not pay a dividend. USD Partners pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares USD Partners and Quanta Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USD Partners 21.37% 42.91% 7.72%
Quanta Services 3.21% 8.36% 5.11%

Insider & Institutional Ownership

29.8% of USD Partners shares are owned by institutional investors. Comparatively, 89.0% of Quanta Services shares are owned by institutional investors. 0.7% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Quanta Services beats USD Partners on 9 of the 16 factors compared between the two stocks.

USD Partners Company Profile

USD Partners LP acquires, develops and operates energy-related logistics assets, including rail terminals and other midstream infrastructure. The Company’s segments include Terminalling services and Fleet services. The Terminalling services segment consists of various operations, including Hardisty terminal, Casper terminal and Ethanol terminals. Its Hardisty terminal is an origination terminal where it loads various grades of Canadian crude oil onto railcars for transportation to end markets. The Casper terminal is a crude oil storage, blending and railcar loading terminal located in Casper, Wyoming. Its San Antonio and West Colton terminals are unit train-capable destination terminals that transload ethanol received by rail from producers onto trucks to meet local ethanol demand. The Company provides its customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under master fleet services agreements.

Quanta Services Company Profile

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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