Willdan Group (NASDAQ: WLDN) and Servicemaster Global (NYSE:SERV) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This table compares Willdan Group and Servicemaster Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
66.1% of Willdan Group shares are held by institutional investors. 13.3% of Willdan Group shares are held by insiders. Comparatively, 1.2% of Servicemaster Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Willdan Group and Servicemaster Global, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Willdan Group presently has a consensus price target of $37.67, indicating a potential upside of 58.26%. Servicemaster Global has a consensus price target of $49.27, indicating a potential downside of 7.63%. Given Willdan Group’s stronger consensus rating and higher probable upside, analysts clearly believe Willdan Group is more favorable than Servicemaster Global.
Valuation & Earnings
This table compares Willdan Group and Servicemaster Global’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Willdan Group||$208.94 million||1.00||$8.29 million||$1.15||20.70|
|Servicemaster Global||$2.75 billion||2.62||$155.00 million||$1.73||30.83|
Servicemaster Global has higher revenue and earnings than Willdan Group. Willdan Group is trading at a lower price-to-earnings ratio than Servicemaster Global, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Willdan Group has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Servicemaster Global has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Servicemaster Global beats Willdan Group on 8 of the 14 factors compared between the two stocks.
Willdan Group Company Profile
Willdan Group, Inc. is a holding company. The Company provides professional technical and consulting services to utilities, private industry and public agencies at all levels of government, primarily in California and New York. It operates through four segments: Energy Efficiency Services, Engineering Services, Public Finance Services and Homeland Security Services. The Energy Efficiency Services segment provides energy efficiency consulting services to utilities, state agencies, municipalities, private industry and non-profit organizations. The Engineering Services segment offers a range of engineering and planning services to its public and private sector clients. The Public Finance Services segment provides support for the various financing techniques employed by public agencies to finance their operations and infrastructure. The Homeland Security Services segment provides national preparedness, homeland security consulting, public safety and emergency response services.
Servicemaster Global Company Profile
ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.
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