The Shaw Group (NYSE: SHAW) and Primoris Services (NASDAQ:PRIM) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
This is a breakdown of current ratings and target prices for The Shaw Group and Primoris Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Shaw Group||0||0||0||0||N/A|
Earnings and Valuation
This table compares The Shaw Group and Primoris Services’ revenue, earnings per share 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||0.69||$26.72 million||$1.24||21.73|
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.
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|
Insider and Institutional Ownership
70.5% of Primoris Services shares are held by institutional investors. 24.0% of Primoris Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Primoris Services pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. The Shaw Group does not pay a dividend. Primoris Services pays out 19.4% of its earnings in the form of a dividend.
Primoris Services beats The Shaw Group on 8 of the 10 factors compared between the two stocks.
About The Shaw Group
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.
About Primoris Services
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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