Reviewing Orion Group Holdings (ORN) and EMCOR Group (EME)

Orion Group Holdings (NYSE: ORN) and EMCOR Group (NYSE:EME) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares Orion Group Holdings and EMCOR Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Group Holdings -0.98% 1.37% 0.70%
EMCOR Group 2.63% 13.19% 5.32%

Risk & Volatility

Orion Group Holdings has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, EMCOR Group has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

87.8% of Orion Group Holdings shares are owned by institutional investors. Comparatively, 93.4% of EMCOR Group shares are owned by institutional investors. 8.0% of Orion Group Holdings shares are owned by insiders. Comparatively, 2.0% of EMCOR Group shares are owned 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.

Dividends

EMCOR Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Orion Group Holdings does not pay a dividend. EMCOR Group pays out 9.6% of its earnings in the form of a dividend. Orion Group Holdings has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Orion Group Holdings and EMCOR Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Group Holdings 0 2 1 0 2.33
EMCOR Group 0 3 1 0 2.25

Orion Group Holdings currently has a consensus price target of $8.33, suggesting a potential upside of 20.60%. EMCOR Group has a consensus price target of $70.50, suggesting a potential upside of 0.90%. Given Orion Group Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Orion Group Holdings is more favorable than EMCOR Group.

Valuation and Earnings

This table compares Orion Group Holdings and EMCOR Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Orion Group Holdings $584.49 million 0.33 $31.23 million ($0.21) -32.90
EMCOR Group $7.66 billion 0.54 $425.32 million $3.33 20.98

EMCOR Group has higher revenue and earnings than Orion Group Holdings. Orion Group Holdings is trading at a lower price-to-earnings ratio than EMCOR Group, indicating that it is currently the more affordable of the two stocks.

Summary

EMCOR Group beats Orion Group Holdings on 9 of the 16 factors compared between the two stocks.

Orion Group Holdings Company Profile

Orion Group Holdings, Inc., formerly Orion Marine Group, Inc., is engaged in heavy civil construction project management business. The Company specializes in marine construction. It provides a range of heavy civil marine construction services to federal agencies, state and municipal governments, and private commercial and industrial customers. Its heavy civil marine construction and project management services include new construction, dredging, repair and maintenance, and other related specialty services. It provides heavy civil marine construction services on, over and under the water in the continental United States, Alaska, Canada and the Caribbean Basin. It provides heavy civil marine construction services through projects that are obtained primarily through a competitive bid or contract process. It also provides tilt-wall construction services, parking structures, concrete slabs for commercial and institutional applications, curbs, gutters and paving, among other capabilities.

EMCOR Group Company Profile

EMCOR Group, Inc. is an electrical and mechanical construction, and facilities services firm in the United States. The Company provides building services and industrial services. Its segments are United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services, and United Kingdom building services. As of December 31, 2016, its services were provided to a range of commercial, industrial, utility and institutional customers through approximately 75 operating subsidiaries and joint venture entities. It is providing construction services relating to electrical and mechanical systems in various types of non-residential and certain residential facilities, and in providing services relating to the operation, maintenance and management of facilities, including refineries and petrochemical plants. It operates various electrical and mechanical systems.

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