Analyzing IES (IESC) & Emcor (EME)

IES (NASDAQ: IESC) and Emcor (NYSE:EME) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

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IES has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Emcor has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

78.2% of IES shares are held by institutional investors. Comparatively, 96.0% of Emcor shares are held by institutional investors. 61.7% of IES shares are held by insiders. Comparatively, 2.0% of Emcor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares IES and Emcor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IES $810.70 million 0.45 $13.42 million N/A N/A
Emcor $7.69 billion 0.61 $227.19 million $4.06 19.77

Emcor has higher revenue and earnings than IES.

Analyst Recommendations

This is a breakdown of current ratings and target prices for IES and Emcor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IES 0 0 0 0 N/A
Emcor 0 2 1 0 2.33

Emcor has a consensus target price of $87.00, indicating a potential upside of 8.40%. Given Emcor’s higher possible upside, analysts clearly believe Emcor is more favorable than IES.

Profitability

This table compares IES and Emcor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IES -2.46% 5.86% 3.26%
Emcor 2.96% 15.10% 6.21%

Dividends

Emcor pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. IES does not pay a dividend. Emcor pays out 7.9% of its earnings in the form of a dividend.

Summary

Emcor beats IES on 11 of the 14 factors compared between the two stocks.

About IES

IES Holdings, Inc. engages in communications, commercial and industrial, infrastructure solutions, and residential businesses in the United States. The company's Commercial & Industrial segment provides electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company's Communications segment provides network infrastructure services for data centers and other mission critical environments. This segment designs, installs, and maintains network infrastructure for financial, medical, hospitality, government, high-tech manufacturing, educational, and information technology industries; designs and installs audio/visual, telephone, fire, wireless access, and intrusion alarm systems; and designs/builds, services, and maintains data network systems. Its Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures customer commercial and industrial generator enclosures; manufactures, remanufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. Its Residential segment offers electrical installation services to single-family housing and multi-family apartment complexes; and cable television installation services to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. The company was founded in 1997 and is headquartered in Houston, Texas.

About Emcor

EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services in the United States. The company designs, integrates, installs, starts-up, operates, and maintains electric power transmission and distribution systems; premises electrical and lighting systems; process instrumentation in the refining, chemical process, food process, and mining industries; low-voltage, voice and data communications, fire protection, water and wastewater treatment, and controls and filtration systems; roadway and transit lighting and fiber-optic lines; heating, ventilation, air conditioning, refrigeration, and clean-room process ventilation systems; plumbing, processing, and piping systems; and central plant heating and cooling systems, as well as offers cranes and rigging, millwrighting, and steel fabrication, erection, and welding services. It also offers building services to facilities, such as commercial and government site-based operations and maintenance; reception, security, and catering; outage services to utilities and industrial plants; military base operations support; mobile mechanical maintenance and services; floor care and janitorial; landscaping, lot sweeping, and snow removal; facilities and vendor management; call center; installation and support for building systems; small modification and retrofit; infrastructure and building projects; and program development, management, and maintenance services for energy systems. In addition, the company provides industrial services for refineries and petrochemical plants, such as on-site repair, maintenance, and service of heat exchangers, towers, vessels, and piping; design, manufacture, repair, and hydro blast cleaning of shell and tube heat exchangers and related equipment; refinery turnaround planning and engineering, specialty welding, and specialty technical services; and overhaul and maintenance of process units. EMCOR Group, Inc. was founded in 1966 and is headquartered in Norwalk, Connecticut.

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