The Goldfield (NYSE:GV) and Primoris Services (NASDAQ:PRIM) are both small-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

27.9% of The Goldfield shares are owned by institutional investors. Comparatively, 82.8% of Primoris Services shares are owned by institutional investors. 9.2% of The Goldfield shares are owned by company insiders. Comparatively, 1.5% of Primoris Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares The Goldfield and Primoris Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Goldfield 4.45% 12.08% 5.73%
Primoris Services 2.78% 15.06% 5.12%

Valuation and Earnings

This table compares The Goldfield and Primoris Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Goldfield $180.65 million 0.68 $6.73 million N/A N/A
Primoris Services $3.11 billion 0.31 $82.33 million $1.61 12.26

Primoris Services has higher revenue and earnings than The Goldfield.

Volatility & Risk

The Goldfield has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Primoris Services has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for The Goldfield and Primoris Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Goldfield 0 0 0 0 N/A
Primoris Services 0 0 4 0 3.00

Primoris Services has a consensus price target of $22.50, suggesting a potential upside of 13.98%. Given Primoris Services’ higher possible upside, analysts clearly believe Primoris Services is more favorable than The Goldfield.

The Goldfield Company Profile

The Goldfield Corporation, together with its subsidiaries, provides electrical infrastructure construction services primarily to electric utilities and industrial customers in Southeast and mid-Atlantic regions of the United States and Texas. It also offers electrical contracting services, including the construction of transmission lines, distribution systems, drilled pier foundations, substations, and other electrical services. In addition, the company is involved in the acquisition, development, management, and disposition of detached single-family homes, townhomes, and condominiums in Brevard County, Florida. The Goldfield Corporation was founded in 1906 and is based in Melbourne, Florida.

Primoris Services Company Profile

Primoris Services Corporation, a specialty contractor and infrastructure company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. The company operates through five segments: Power, Industrial, and Engineering; Pipeline and Underground; Utilities and Distribution; Transmission and Distribution; and Civil. The Power, Industrial, and Engineering segment offer a range of services, such as engineering, procurement, and construction project delivery, turnkey construction, retrofit, upgrade, repair, outage, and maintenance for entities in the petroleum, petrochemical, water, and other industries. The Pipeline and Underground segment provides a range of services comprising pipeline construction, pipeline maintenance, pipeline facility work, compressor station, pump station, metering facility, and other pipeline related services for entities in the petroleum and petrochemical industries. The Utilities and Distribution segment offers utility line installation and maintenance, gas and electric distribution, streetlight construction, substation work, and fiber optic cable installation services. The Transmission and Distribution segment provides services in electric and gas transmission and distribution that include comprehensive engineering, procurement, maintenance and construction, repair, and restoration of utility infrastructure. The Civil segment undertakes highway and bridge construction, airport runway and taxiway construction, demolition, heavy earthwork, soil stabilization, mass excavation, and drainage projects. The company also offers process and product engineering services. It serves public and private utilities, petrochemical companies, energy companies, municipalities, state departments of transportation, and other customers. Primoris Services Corporation is headquartered in Dallas, Texas.

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