Quanta Services (NYSE: PWR) and Comfort Systems USA (NYSE:FIX) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Institutional and Insider Ownership
87.4% of Quanta Services shares are owned by institutional investors. Comparatively, 95.0% of Comfort Systems USA shares are owned by institutional investors. 0.8% of Quanta Services shares are owned by insiders. Comparatively, 3.5% of Comfort Systems USA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Comfort Systems USA pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Quanta Services does not pay a dividend. Comfort Systems USA pays out 18.4% of its earnings in the form of a dividend. Comfort Systems USA has increased its dividend for 5 consecutive years.
Earnings and Valuation
This table compares Quanta Services and Comfort Systems USA’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quanta Services||$9.47 billion||0.58||$314.97 million||$1.78||20.58|
|Comfort Systems USA||$1.79 billion||0.95||$55.27 million||$1.74||26.44|
Quanta Services has higher revenue and earnings than Comfort Systems USA. Quanta Services is trading at a lower price-to-earnings ratio than Comfort Systems USA, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Quanta Services and Comfort Systems USA, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comfort Systems USA||0||3||0||0||2.00|
Quanta Services currently has a consensus target price of $45.67, suggesting a potential upside of 24.64%. Comfort Systems USA has a consensus target price of $48.00, suggesting a potential upside of 4.35%. Given Quanta Services’ stronger consensus rating and higher probable upside, analysts clearly believe Quanta Services is more favorable than Comfort Systems USA.
This table compares Quanta Services and Comfort Systems USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comfort Systems USA||3.44%||17.86%||8.35%|
Risk and Volatility
Quanta Services has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Comfort Systems USA has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Comfort Systems USA beats Quanta Services on 10 of the 17 factors compared between the two stocks.
About Quanta Services
Quanta Services, Inc. provides specialty contracting services to the electric power, communication, and oil and gas industries in the United States, Canada, Australia, Latin America, and internationally. Its Electric Power Infrastructure Services segment provides network solutions, including the design, installation, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure, and substation facilities, as well as other engineering and technical services. It also provides emergency restoration services, including the repair of infrastructure damaged by inclement weather. In addition, it designs, installs, and maintains renewable energy generation facilities comprising solar, wind, and various types of natural gas generation facilities, as well as related switchyards and transmission infrastructure; constructs electric power generation facilities; designs, installs, maintains, and repairs commercial and industrial wiring; and installs traffic networks, and cable and control systems for light rail lines. The company's Oil and Gas Infrastructure Services segment provides network solutions to customers involved in the development, transportation, storage, and processing of natural gas, oil, and other pipeline products. Its services include the design, installation, repair, and maintenance of pipeline transmission and distribution systems, gathering systems, production systems, storage systems, and compressor and pump stations, as well as related trenching, directional boring, and mechanized welding services. This segment also provides pipeline protection, integrity testing, rehabilitation and replacement, and fabrication of pipeline support systems and related structures and facilities, as well as services for the offshore and inland water energy markets; and designs, installs, and maintains fueling systems, as well as water and sewer infrastructure. Quanta Services, Inc. was founded in 1997 and is headquartered in Houston, Texas.
About Comfort Systems USA
Comfort Systems USA, Inc. provides mechanical installation, renovation, maintenance, repair, and replacement services for the mechanical services industry in the United States. It is involved in the design, engineering, integration, installation, and start-up of mechanical and related systems; and maintenance, repair, replacement, renovation, expansion, reconfiguration, and monitoring of mechanical systems, including heating, ventilation, and air conditioning (HVAC) systems, as well as industrial process piping. The company provides its services for office buildings, retail centers, apartment complexes, and manufacturing plants; and healthcare, education, and government facilities. It serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional HVAC markets. Comfort Systems USA, Inc. was founded in 1917 and is headquartered in Houston, Texas.
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