The Shaw Group (SHAW) vs. Primoris Services (PRIM) Head to Head Analysis

The Shaw Group (NYSE: SHAW) and Primoris Services (NASDAQ:PRIM) are both construction & engineering – nec companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

Primoris Services pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. The Shaw Group does not pay a dividend. Primoris Services pays out 17.7% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares The Shaw Group and Primoris Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Shaw Group N/A N/A N/A $3.25 N/A
Primoris Services $2.00 billion 0.72 $26.72 million $1.24 22.58

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

Profitability

This table compares The Shaw Group and Primoris Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Shaw Group N/A N/A N/A
Primoris Services 3.64% 15.66% 7.22%

Insider and Institutional Ownership

70.5% of Primoris Services shares are owned by institutional investors. 24.0% of Primoris Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for The Shaw Group and Primoris Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Shaw Group 0 0 0 0 N/A
Primoris Services 0 3 2 0 2.40

Primoris Services has a consensus price target of $31.00, indicating a potential upside of 10.71%.

Summary

Primoris Services beats The Shaw Group on 8 of the 10 factors compared between the two stocks.

The Shaw Group Company Profile

The Shaw Group Inc. (Shaw) is a provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to a diverse client base that includes multinational and national oil companies and industrial corporations, regulated utilities, independent and merchant power producers, and government agencies. The Company has developed and acquired intellectual property, including induction pipe bending technology and environmental decontamination technologies. Its segments include Power, Plant Services, Environmental & Infrastructure (E&I), Fabrication & Manufacturing (F&M), Energy & Chemicals (E&C) Segment, Investment in Westinghouse, and Corporate segment. Effective August 31, 2012, the Company completed the divestiture of its Energy & Chemicals business to Technip. On January 4, 2013, TOSHIBA CORP acquired a 20% stake in Westinghouse from Shaw Group Inc.

Primoris Services 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.

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