Granite Construction (NYSE: GVA) and The Shaw Group (NYSE:SHAW) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Institutional & Insider Ownership

98.6% of Granite Construction shares are held by institutional investors. 1.3% of Granite Construction shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Granite Construction and The Shaw Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Granite Construction $2.51 billion 1.04 $57.12 million $1.31 50.04
The Shaw Group N/A N/A N/A $3.25 N/A

Granite Construction has higher revenue and earnings than The Shaw Group. The Shaw Group is trading at a lower price-to-earnings ratio than Granite Construction, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Granite Construction and The Shaw Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Construction 1.84% 5.71% 2.93%
The Shaw Group N/A N/A N/A

Dividends

Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.8%. The Shaw Group does not pay a dividend. Granite Construction pays out 39.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Granite Construction and The Shaw Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Construction 0 2 7 0 2.78
The Shaw Group 0 0 0 0 N/A

Granite Construction presently has a consensus target price of $66.43, indicating a potential upside of 1.34%.

Summary

Granite Construction beats The Shaw Group on 8 of the 10 factors compared between the two stocks.

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.

About The Shaw Group

The Shaw Group Inc. (Shaw) is a provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to a diverse client base that includes multinational and national oil companies and industrial corporations, regulated utilities, independent and merchant power producers, and government agencies. The Company has developed and acquired intellectual property, including induction pipe bending technology and environmental decontamination technologies. Its segments include Power, Plant Services, Environmental & Infrastructure (E&I), Fabrication & Manufacturing (F&M), Energy & Chemicals (E&C) Segment, Investment in Westinghouse, and Corporate segment. Effective August 31, 2012, the Company completed the divestiture of its Energy & Chemicals business to Technip. On January 4, 2013, TOSHIBA CORP acquired a 20% stake in Westinghouse from Shaw Group Inc.

Receive News & Stock Ratings for Granite Construction Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Granite Construction Incorporated and related stocks with our FREE daily email newsletter.