Pike Corp (NYSE: PIKE) and MasTec (NYSE:MTZ) are both smart grid & power distribution construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Pike Corp and MasTec, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pike Corp 0 0 0 0 N/A
MasTec 0 1 10 0 2.91

MasTec has a consensus price target of $56.45, suggesting a potential upside of 32.98%. Given MasTec’s higher probable upside, analysts plainly believe MasTec is more favorable than Pike Corp.

Profitability

This table compares Pike Corp and MasTec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pike Corp N/A N/A N/A
MasTec 3.78% 20.67% 7.04%

Institutional and Insider Ownership

71.1% of MasTec shares are held by institutional investors. 20.3% of MasTec shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Pike Corp has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, MasTec has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Earnings & Valuation

This table compares Pike Corp and MasTec’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pike Corp N/A N/A N/A $0.32 37.53
MasTec $5.13 billion 0.68 $131.26 million $2.92 14.54

MasTec has higher revenue and earnings than Pike Corp. MasTec is trading at a lower price-to-earnings ratio than Pike Corp, indicating that it is currently the more affordable of the two stocks.

Summary

MasTec beats Pike Corp on 10 of the 10 factors compared between the two stocks.

About Pike Corp

Pike Corporation is a provider of construction and engineering services for investor-owned, municipal and co-operative electric utilities in the United States. The Company’s suite of energy and communication solutions includes facilities planning and siting, permitting, engineering, design, installation, maintenance and repair of power delivery systems, including utility-grade solar construction projects and storm-related services. The Company operates in two segments: construction and engineering. On January 1, 2014, Synergetic Design Holdings, Inc. merged with and into Pike Enterprises, Inc., a wholly owned subsidiary of the Company, and UC Synergetic, Inc. (UCS) merged with and into Pike Energy Solutions, LLC (PES), the surviving entity of which was named UC Synergetic, LLC.

About MasTec

MasTec, Inc. is an infrastructure construction company. The Company operates primarily across North America through a range of industries. The Company operates through five segments: Communications, Oil and Gas, Electrical Transmission, Power Generation and Industrial, and Other. Its primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy and utility infrastructure, such as wireless, wireline/fiber, satellite communications and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; conventional and renewable power generation, and industrial infrastructure. The Company offered its services primarily under the MasTec service mark and had operations across 510 locations as of December 31, 2016. It provides services under master service and other service agreements, which are generally multi-year agreements.

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