Reviewing Latham Group (NASDAQ:SWIM) and Everus Construction Group (NYSE:ECG)

Everus Construction Group (NYSE:ECG) and Latham Group (NASDAQ:SWIM) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

This table compares Everus Construction Group and Latham Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everus Construction Group	5.65%	37.17%	13.38%
Latham Group	1.55%	2.13%	1.02%

Analyst Ratings

This is a summary of recent recommendations and price targets for Everus Construction Group and Latham Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everus Construction Group	0	5	3	1	2.56
Latham Group	2	3	2	0	2.00

Everus Construction Group presently has a consensus target price of $155.67, suggesting a potential upside of 22.31%. Latham Group has a consensus target price of $7.50, suggesting a potential upside of 33.21%. Given Latham Group’s higher possible upside, analysts plainly believe Latham Group is more favorable than Everus Construction Group.

Volatility and Risk

Everus Construction Group has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500. Comparatively, Latham Group has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Earnings & Valuation

This table compares Everus Construction Group and Latham Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everus Construction Group	$3.75 billion	1.73	$201.77 million	$4.36	29.19
Latham Group	$545.91 million	1.21	$11.12 million	$0.07	80.43

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

Institutional and Insider Ownership

84.0% of Latham Group shares are held by institutional investors. 0.3% of Everus Construction Group shares are held by insiders. Comparatively, 3.3% of Latham Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Everus Construction Group beats Latham Group on 11 of the 15 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 Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.