Critical Review: Tutor Perini Corporation (TPC) versus Grana y Montero S.A.A. (GRAM)
Tutor Perini Corporation (NYSE: TPC) and Grana y Montero S.A.A. (NYSE:GRAM) are both small-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Institutional & Insider Ownership
81.1% of Tutor Perini Corporation shares are held by institutional investors. Comparatively, 11.7% of Grana y Montero S.A.A. shares are held by institutional investors. 24.5% of Tutor Perini Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Tutor Perini Corporation and Grana y Montero S.A.A.’s 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%|
|Grana y Montero S.A.A.||0.82%||1.55%||0.52%|
Risk and Volatility
Tutor Perini Corporation has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, Grana y Montero S.A.A. has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Tutor Perini Corporation and Grana y Montero S.A.A., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tutor Perini Corporation||0||2||6||0||2.75|
|Grana y Montero S.A.A.||2||0||0||0||1.00|
Tutor Perini Corporation presently has a consensus price target of $31.00, suggesting a potential upside of 15.46%. Given Tutor Perini Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tutor Perini Corporation is more favorable than Grana y Montero S.A.A..
Earnings & Valuation
This table compares Tutor Perini Corporation and Grana y Montero S.A.A.’s 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||0.27||$252.14 million||$2.03||13.23|
|Grana y Montero S.A.A.||N/A||N/A||N/A||$0.11||42.73|
Tutor Perini Corporation has higher revenue and earnings than Grana y Montero S.A.A.. Tutor Perini Corporation is trading at a lower price-to-earnings ratio than Grana y Montero S.A.A., indicating that it is currently the more affordable of the two stocks.
Tutor Perini Corporation beats Grana y Montero S.A.A. on 11 of the 12 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 Grana y Montero S.A.A.
Grana y Montero SAA is a Peru-based holding company primarily engaged in the four business areas: Construction and Engineering Industry, Real Estate, Oil Services, and Operation of Public Concessions and Business Support Services. Through its subsidiaries, the Company provides such services as the development and management of real estate properties and leisure facilities; the exploration, production and sale of oil, natural gas and its derivates; the storage and distribution of combustibles; information technology services; engineering consultancy; the operation and maintenance of rails and roads concessions; as well as the execution and management of projects related to the generation of electric power; among others. The Company owns such subsidiaries as GMD SA, Adexus SA, Concar SA, Survial SA, Norvial SA and Promotores Asociados de Inmobiliarios SA, among others.
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