Reviewing Tutor Perini Corporation (TPC) & Granite Construction (GVA)

Tutor Perini Corporation (NYSE: TPC) and Granite Construction (NYSE:GVA) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional and Insider Ownership

81.1% of Tutor Perini Corporation shares are held by institutional investors. Comparatively, 97.9% of Granite Construction shares are held by institutional investors. 24.5% of Tutor Perini Corporation shares are held by insiders. Comparatively, 1.3% of Granite Construction shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tutor Perini Corporation and Granite Construction’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tutor Perini Corporation 2.08% 6.60% 2.51%
Granite Construction 1.61% 4.80% 2.49%

Valuation and Earnings

This table compares Tutor Perini Corporation and Granite Construction’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tutor Perini Corporation $4.94 billion 0.28 $252.14 million $2.03 13.74
Granite Construction $2.70 billion 0.85 $126.96 million $1.07 54.05

Tutor Perini Corporation has higher revenue and earnings than Granite Construction. Tutor Perini Corporation is trading at a lower price-to-earnings ratio than Granite Construction, indicating that it is currently the more affordable of the two stocks.

Dividends

Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Tutor Perini Corporation does not pay a dividend. Granite Construction pays out 48.6% of its earnings in the form of a dividend.

Volatility and Risk

Tutor Perini Corporation has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500. Comparatively, Granite Construction has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Tutor Perini Corporation and Granite Construction, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tutor Perini Corporation 0 3 5 0 2.63
Granite Construction 0 2 6 0 2.75

Tutor Perini Corporation currently has a consensus price target of $32.00, suggesting a potential upside of 14.70%. Granite Construction has a consensus price target of $63.71, suggesting a potential upside of 10.18%. Given Tutor Perini Corporation’s higher possible upside, equities research analysts clearly believe Tutor Perini Corporation is more favorable than Granite Construction.

Summary

Tutor Perini Corporation beats Granite Construction on 10 of the 16 factors compared between the two stocks.

Tutor Perini Corporation Company Profile

Tutor Perini Corporation is a construction company offering general contracting, construction management and design-build services to private customers and public agencies across the world. The Company operates through three segments: Civil, Building and Specialty Contractors. Its Civil segment specializes in public works construction and the repair, replacement and reconstruction of infrastructure across various geographic regions of the United States. Its Building segment provides services to various specialized building markets for private and public works customers, including the hospitality and gaming, transportation, healthcare, corporate and municipal offices, sports and entertainment, education, correctional facilities, biotech, pharmaceutical and industrial markets. Its Specialty Contractors segment specializes in electrical, mechanical, plumbing, heating, ventilation and air conditioning (HVAC), fire protection systems, and pneumatically placed concrete.

Granite Construction Company Profile

Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. The Company operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.

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