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

Risk & Volatility

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

Institutional and Insider Ownership

40.2% of USD Partners shares are held by institutional investors. Comparatively, 98.6% of Granite Construction shares are held by institutional investors. 1.3% of Granite Construction shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USD Partners $110.04 million 2.60 $55.88 million $1.23 8.82
Granite Construction $2.70 billion 0.84 $126.96 million $1.07 53.18

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.

Profitability

This table compares USD Partners and Granite Construction’s 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%
Granite Construction 1.61% 4.80% 2.49%

Dividends

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

Analyst Ratings

This is a summary of current recommendations and price targets for USD Partners and Granite Construction, as reported by MarketBeat.

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

USD Partners currently has a consensus target price of $16.00, suggesting a potential upside of 47.47%. Granite Construction has a consensus target price of $63.67, suggesting a potential upside of 11.89%. Given USD Partners’ higher probable upside, equities 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.

About USD Partners

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.

About Granite Construction

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.

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