MasTec (NYSE:MTZ) and EMCOR Group (NYSE:EME) are both mid-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Profitability
This table compares MasTec and EMCOR Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
MasTec | 4.86% | 18.75% | 6.64% |
EMCOR Group | 1.57% | 16.86% | 7.10% |
Volatility & Risk
MasTec has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, EMCOR Group has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
Valuation and Earnings
This table compares MasTec and EMCOR Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MasTec | $7.18 billion | 0.89 | $392.33 million | $5.09 | 17.04 |
EMCOR Group | $9.17 billion | 0.58 | $325.14 million | $5.75 | 16.93 |
MasTec has higher earnings, but lower revenue than EMCOR Group. EMCOR Group is trading at a lower price-to-earnings ratio than MasTec, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for MasTec and EMCOR Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
MasTec | 0 | 0 | 11 | 0 | 3.00 |
EMCOR Group | 0 | 3 | 0 | 0 | 2.00 |
MasTec currently has a consensus target price of $66.6667, suggesting a potential downside of 23.15%. EMCOR Group has a consensus target price of $84.00, suggesting a potential downside of 13.73%. Given EMCOR Group's higher possible upside, analysts plainly believe EMCOR Group is more favorable than MasTec.
Insider and Institutional Ownership
82.5% of MasTec shares are owned by institutional investors. Comparatively, 93.3% of EMCOR Group shares are owned by institutional investors. 23.9% of MasTec shares are owned by insiders. Comparatively, 1.9% of EMCOR Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
MasTec beats EMCOR Group on 8 of the 14 factors compared between the two stocks.