Primoris Services Corporation (NASDAQ: PRIM) and Pike Corp (NYSE:PIKE) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
This table compares Primoris Services Corporation and Pike Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Primoris Services Corporation||2.09%||11.30%||4.90%|
Institutional and Insider Ownership
69.7% of Primoris Services Corporation shares are held by institutional investors. 24.0% of Primoris Services Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Primoris Services Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. Pike Corp does not pay a dividend. Primoris Services Corporation pays out 23.4% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Primoris Services Corporation and Pike Corp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Primoris Services Corporation||$2.30 billion||0.65||$162.46 million||$0.94||30.88|
Primoris Services Corporation has higher revenue and earnings than Pike Corp.
This is a breakdown of current ratings for Primoris Services Corporation and Pike Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Primoris Services Corporation||0||5||2||0||2.29|
Primoris Services Corporation currently has a consensus target price of $26.67, indicating a potential downside of 8.14%. Given Primoris Services Corporation’s higher probable upside, analysts plainly believe Primoris Services Corporation is more favorable than Pike Corp.
Primoris Services Corporation beats Pike Corp on 9 of the 10 factors compared between the two stocks.
Primoris Services Corporation Company Profile
Primoris Services Corporation is a holding company. The Company holds various subsidiaries, through which it operates as a specialty contractor and infrastructure company. The Company provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to public utilities, petrochemical companies, energy companies, municipalities, state departments of transportation and other customers. It operates in three segments: the West Construction Services segment (West segment), the East Construction Services segment (East segment) and the Energy segment. The Company installs, replaces, repairs and rehabilitates natural gas, refined product, water and wastewater pipeline systems; large diameter gas and liquid pipeline facilities, and heavy civil projects, earthwork and site development.
Pike Corp Company Profile
Pike Corporation is a provider of construction and engineering services for investor-owned, municipal and co-operative electric utilities in the United States. The Company’s suite of energy and communication solutions includes facilities planning and siting, permitting, engineering, design, installation, maintenance and repair of power delivery systems, including utility-grade solar construction projects and storm-related services. The Company operates in two segments: construction and engineering. On January 1, 2014, Synergetic Design Holdings, Inc. merged with and into Pike Enterprises, Inc., a wholly owned subsidiary of the Company, and UC Synergetic, Inc. (UCS) merged with and into Pike Energy Solutions, LLC (PES), the surviving entity of which was named UC Synergetic, LLC.
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