Tutor Perini Corporation (NYSE: TPC) and USD Partners (NYSE:USDP) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Tutor Perini Corporation and USD Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tutor Perini Corporation 0 2 6 0 2.75
USD Partners 1 1 2 0 2.25

Tutor Perini Corporation currently has a consensus target price of $31.00, indicating a potential upside of 19.46%. USD Partners has a consensus target price of $16.00, indicating a potential upside of 72.97%. Given USD Partners’ higher possible upside, analysts plainly believe USD Partners is more favorable than Tutor Perini Corporation.

Dividends

USD Partners pays an annual dividend of $1.36 per share and has a dividend yield of 14.7%. Tutor Perini Corporation does not pay a dividend. USD Partners pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Tutor Perini Corporation and USD Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tutor Perini Corporation $4.94 billion 0.26 $252.14 million $2.03 12.78
USD Partners $110.04 million 2.22 $55.88 million $1.23 7.52

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

Profitability

This table compares Tutor Perini Corporation and USD Partners’ 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%
USD Partners 21.37% 42.91% 7.72%

Risk & Volatility

Tutor Perini Corporation has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500. Comparatively, USD Partners has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Insider & Institutional Ownership

81.1% of Tutor Perini Corporation shares are held by institutional investors. Comparatively, 40.2% of USD Partners shares are held by institutional investors. 24.5% of Tutor Perini Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Tutor Perini Corporation beats USD Partners on 10 of the 16 factors compared between the two stocks.

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.

About USD Partners

USD Partners LP acquires, develops and operates energy-related logistics assets, including rail terminals and other midstream infrastructure. The Company’s segments include Terminalling services and Fleet services. The Terminalling services segment consists of various operations, including Hardisty terminal, Casper terminal and Ethanol terminals. Its Hardisty terminal is an origination terminal where it loads various grades of Canadian crude oil onto railcars for transportation to end markets. The Casper terminal is a crude oil storage, blending and railcar loading terminal located in Casper, Wyoming. Its San Antonio and West Colton terminals are unit train-capable destination terminals that transload ethanol received by rail from producers onto trucks to meet local ethanol demand. The Company provides its customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under master fleet services agreements.

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