Everus Construction Group (NYSE:ECG – Get Free Report) and Advanced Drainage Systems (NYSE:WMS – Get Free Report) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Profitability
This table compares Everus Construction Group and Advanced Drainage Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Everus Construction Group | 5.18% | 36.74% | 12.59% |
| Advanced Drainage Systems | 15.35% | 28.85% | 12.36% |
Institutional and Insider Ownership
89.8% of Advanced Drainage Systems shares are held by institutional investors. 0.2% of Everus Construction Group shares are held by insiders. Comparatively, 1.6% of Advanced Drainage Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Everus Construction Group | $2.85 billion | 1.61 | $143.42 million | $3.53 | 25.54 |
| Advanced Drainage Systems | $2.90 billion | 4.00 | $450.17 million | $5.86 | 25.48 |
Advanced Drainage Systems has higher revenue and earnings than Everus Construction Group. Advanced Drainage Systems is trading at a lower price-to-earnings ratio than Everus Construction Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Everus Construction Group and Advanced Drainage Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Everus Construction Group | 0 | 2 | 2 | 1 | 2.80 |
| Advanced Drainage Systems | 0 | 2 | 8 | 0 | 2.80 |
Everus Construction Group currently has a consensus price target of $100.33, indicating a potential upside of 11.30%. Advanced Drainage Systems has a consensus price target of $157.11, indicating a potential upside of 5.21%. Given Everus Construction Group’s higher probable upside, equities analysts plainly believe Everus Construction Group is more favorable than Advanced Drainage Systems.
Summary
Advanced Drainage Systems beats Everus Construction Group on 8 of the 13 factors compared between the two stocks.
About Everus Construction Group
Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.
About Advanced Drainage Systems
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. The company also purchases and distributes construction fabrics and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage, as well as drainage grates and other products. In addition, it provides PVC hubs, rubber sleeves, and stainless-steel bands. The company offers its products for non-residential, residential, agriculture, and infrastructure applications through a network of distribution centers. Advanced Drainage Systems, Inc. incorporated in 1966 and is headquartered in Hilliard, Ohio.
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