Granite Construction (NYSE: GVA) is one of 47 public companies in the “Construction & Engineering” industry, but how does it compare to its competitors? We will compare Granite Construction to related businesses based off the strength of its dividends, earnings, risk, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

99.0% of Granite Construction shares are owned by institutional investors. Comparatively, 83.6% of shares of all “Construction & Engineering” companies are owned by institutional investors. 1.3% of Granite Construction shares are owned by company insiders. Comparatively, 10.0% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Granite Construction and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Construction 0 1 6 0 2.86
Granite Construction Competitors 195 986 1549 21 2.51

Granite Construction currently has a consensus target price of $63.67, suggesting a potential upside of 14.26%. All “Construction & Engineering” companies have a potential upside of 24.23%. Given Granite Construction’s competitors higher possible upside, analysts clearly believe Granite Construction has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Granite Construction and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Granite Construction $2.70 billion $126.96 million 52.08
Granite Construction Competitors $3.12 billion $144.23 million 17.99

Granite Construction’s competitors have higher revenue and earnings than Granite Construction. Granite Construction is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

Volatility & Risk

Granite Construction has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Granite Construction’s competitors have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Profitability

This table compares Granite Construction and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Construction 1.61% 4.80% 2.49%
Granite Construction Competitors 3.55% 10.75% 3.62%

Dividends

Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Granite Construction pays out 48.6% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 1.5% and pay out 125.1% of their earnings in the form of a dividend.

Summary

Granite Construction competitors beat Granite Construction on 10 of the 15 factors compared.

About Granite Construction

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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