Granite Construction (NYSE: GVA) and USD Partners (NYSE:USDP) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Granite Construction $2.70 billion 0.84 $126.96 million $1.07 53.34
USD Partners $110.04 million 2.60 $55.88 million $1.23 8.82

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

Insider and Institutional Ownership

98.6% of Granite Construction shares are owned by institutional investors. Comparatively, 40.2% of USD Partners shares are owned by institutional investors. 1.3% of Granite Construction shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Granite Construction has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, USD Partners has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Granite Construction and USD Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Construction 1.61% 4.80% 2.49%
USD Partners 21.37% 42.91% 7.72%

Dividends

Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. USD Partners pays an annual dividend of $1.36 per share and has a dividend yield of 12.5%. Granite Construction pays out 48.6% of its earnings in the form of 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Construction 0 1 6 0 2.86
USD Partners 1 1 2 0 2.25

Granite Construction presently has a consensus price target of $63.67, suggesting a potential upside of 11.56%. USD Partners has a consensus price target of $16.00, suggesting a potential upside of 47.47%. Given USD Partners’ higher probable upside, analysts plainly believe USD Partners is more favorable than Granite Construction.

Summary

Granite Construction beats USD Partners on 9 of the 16 factors compared between the two stocks.

Granite Construction Company Profile

Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. The Company operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.

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.

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