Pike (NYSE: PIKE) and MasTec (NYSE:MTZ) are both smart grid & power distribution construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Insider & Institutional Ownership
73.2% of MasTec shares are held by institutional investors. 20.3% of MasTec shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Pike and MasTec, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MasTec has a consensus target price of $56.45, indicating a potential upside of 20.49%. Given MasTec’s higher possible upside, analysts clearly believe MasTec is more favorable than Pike.
This table compares Pike and MasTec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Pike and MasTec’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MasTec||$5.13 billion||0.76||$131.26 million||$2.92||16.04|
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.
Volatility and Risk
Pike has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, MasTec has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
MasTec beats Pike on 10 of the 10 factors compared between the two stocks.
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.
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.
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