Quanta Services (NYSE: PWR) and Tutor Perini Corporation (NYSE:TPC) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Quanta Services 3.21% 8.36% 5.11%
Tutor Perini Corporation 2.08% 6.60% 2.51%

Insider and Institutional Ownership

89.0% of Quanta Services shares are owned by institutional investors. Comparatively, 82.2% of Tutor Perini Corporation shares are owned by institutional investors. 0.7% of Quanta Services shares are owned by insiders. Comparatively, 24.5% of Tutor Perini Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Quanta Services and Tutor Perini Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quanta Services 0 3 6 0 2.67
Tutor Perini Corporation 0 1 6 0 2.86

Quanta Services presently has a consensus target price of $41.57, suggesting a potential upside of 16.74%. Tutor Perini Corporation has a consensus target price of $31.00, suggesting a potential upside of 19.46%. Given Tutor Perini Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Tutor Perini Corporation is more favorable than Quanta Services.

Risk & Volatility

Quanta Services has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Tutor Perini Corporation has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500.

Earnings & Valuation

This table compares Quanta Services and Tutor Perini Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quanta Services $8.52 billion 0.65 $655.04 million $1.77 20.12
Tutor Perini Corporation $4.94 billion 0.26 $252.14 million $2.03 12.78

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

Summary

Quanta Services beats Tutor Perini Corporation on 8 of the 13 factors compared between the two stocks.

About Quanta Services

Quanta Services, Inc. is a provider of specialty contracting services, offering infrastructure solutions primarily to the electric power and oil and gas industries in the United States, Canada and Australia and selected other international markets. The Company operates through two segments: Electric Power Infrastructure Services, which provides network solutions to customers in the electric power industry, and Oil and Gas Infrastructure Services, which provides network solutions to customers involved in the development and transportation of natural gas, oil and other pipeline products. The services it provides include the design, installation, upgrade, repair and maintenance of infrastructure within each of the industries it serves, such as electric power transmission and distribution networks, substation facilities, renewable energy facilities, pipeline transmission and distribution systems and facilities, and infrastructure services for the offshore and inland water energy markets.

About Tutor Perini Corporation

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.

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