Analyzing Matrix Service (MTRX) and TopBuild (BLD)

Matrix Service (NASDAQ: MTRX) and TopBuild (NYSE:BLD) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation & Earnings

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This table compares Matrix Service and TopBuild’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Matrix Service $1.20 billion 0.37 -$180,000.00 ($0.01) -1,630.00
TopBuild $1.91 billion 1.44 $158.13 million $2.78 27.78

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

Volatility & Risk

Matrix Service has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, TopBuild has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares Matrix Service and TopBuild’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Matrix Service -0.59% -1.97% -1.12%
TopBuild 8.30% 10.65% 5.87%

Analyst Ratings

This is a summary of recent recommendations for Matrix Service and TopBuild, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Matrix Service 0 2 0 0 2.00
TopBuild 1 1 3 0 2.40

TopBuild has a consensus target price of $74.00, suggesting a potential downside of 4.19%. Given TopBuild’s stronger consensus rating and higher probable upside, analysts plainly believe TopBuild is more favorable than Matrix Service.

Insider and Institutional Ownership

91.6% of Matrix Service shares are owned by institutional investors. Comparatively, 94.7% of TopBuild shares are owned by institutional investors. 2.5% of Matrix Service shares are owned by insiders. Comparatively, 1.3% of TopBuild 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

TopBuild beats Matrix Service on 12 of the 14 factors compared between the two stocks.

Matrix Service Company Profile

Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, and mining and minerals markets in the United States, Canada, and internationally. The company's Electrical Infrastructure segment offers construction and maintenance services to various power generation facilities, such as combined cycle plants, natural gas fired power stations, and renewable energy installations; and high voltage services comprising the construction of new substations, upgrading existing substations, short-run transmission line installations, distribution upgrades and maintenance, and storm restoration services to investor owned utilities. Its Oil Gas & Chemical segment provides turnaround, plant maintenance, engineering, and construction services for the downstream and midstream petroleum industries; and hydro blasting, hydro excavating, chemical cleaning, and vacuum services, as well as performs work in the petrochemical, natural gas, gas processing and compression, and upstream petroleum markets. The company's Storage Solutions segment constructs crude and refined products aboveground storage tanks; and provides planned and emergency maintenance services. This segment also undertakes work related to liquefied natural gas, liquid nitrogen/liquid oxygen, liquid petroleum tanks, and other specialty vessels, including spheres; and plant work in storage terminals and tank farms, as well as provides geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Its Industrial segment constructs and maintains work in the iron and steel, mining and minerals, and agricultural industries, as well as performs work in bulk material handling, fertilizer production facilities, thermal vacuum chambers, and other industrial markets. The company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

TopBuild Company Profile

TopBuild Corp. engages in the installation, distribution, and sale of insulation and other building products to the United States construction industry. The company operates in two segments, Installation and Distribution. It offers rain gutters, garage doors, fireplaces, fireproofing and firestopping products, shower enclosures, closet shelves, accessories, and other building products; and residential insulation services. The company also provides various services and tools that are designed to assist builders in applying the principles of building science to new home construction, which includes pre-construction plan reviews, various inspection services, and diagnostic testing; and home energy rating services. It serves single-family homebuilders, local/single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. TopBuild Corp. has approximately 175 installation branches located in 41 states, and 70 distribution centers in 32 states. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.

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