MasTec (MTZ) & Pike (PIKE) Financial Analysis

MasTec (NYSE: MTZ) and Pike (NYSE:PIKE) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Earnings and Valuation

This table compares MasTec and Pike’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MasTec $5.13 billion 0.73 $131.26 million $2.92 15.41
Pike N/A N/A N/A $0.32 37.53

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

Institutional and Insider Ownership

73.2% of MasTec shares are held by institutional investors. 20.3% of MasTec shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares MasTec and Pike’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MasTec 3.78% 20.67% 7.04%
Pike N/A N/A N/A

Volatility & Risk

MasTec has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Pike has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for MasTec and Pike, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MasTec 0 0 10 0 3.00
Pike 0 0 0 0 N/A

MasTec presently has a consensus target price of $56.45, suggesting a potential upside of 25.44%. Given MasTec’s higher possible upside, equities analysts clearly believe MasTec is more favorable than Pike.

Summary

MasTec beats Pike on 10 of the 10 factors compared between the two stocks.

MasTec Company Profile

MasTec, Inc. is an infrastructure construction company. The Company operates primarily across North America through a range of industries. The Company operates through five segments: Communications, Oil and Gas, Electrical Transmission, Power Generation and Industrial, and Other. Its primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy and utility infrastructure, such as wireless, wireline/fiber, satellite communications and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; conventional and renewable power generation, and industrial infrastructure. The Company offered its services primarily under the MasTec service mark and had operations across 510 locations as of December 31, 2016. It provides services under master service and other service agreements, which are generally multi-year agreements.

Pike Company Profile

Pike Corporation is a provider of construction and engineering services for investor-owned, municipal and co-operative electric utilities in the United States. The Company’s suite of energy and communication solutions includes facilities planning and siting, permitting, engineering, design, installation, maintenance and repair of power delivery systems, including utility-grade solar construction projects and storm-related services. The Company operates in two segments: construction and engineering. On January 1, 2014, Synergetic Design Holdings, Inc. merged with and into Pike Enterprises, Inc., a wholly owned subsidiary of the Company, and UC Synergetic, Inc. (UCS) merged with and into Pike Energy Solutions, LLC (PES), the surviving entity of which was named UC Synergetic, LLC.

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