Critical Analysis: TIC Solutions (TIC) and Its Competitors

TIC Solutions (NYSE:TIC) is one of 203 publicly-traded companies in the “Professional Services” industry, but how does it compare to its competitors? We will compare TIC Solutions to similar businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Volatility & Risk

TIC Solutions has a beta of 2.96, meaning that its share price is 196% more volatile than the S&P 500. Comparatively, TIC Solutions’ competitors have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

57.4% of shares of all “Professional Services” companies are owned by institutional investors. 11.4% of TIC Solutions shares are owned by company insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for TIC Solutions and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TIC Solutions	1	3	3	0	2.29
TIC Solutions Competitors	1514	6320	9096	422	2.49

TIC Solutions presently has a consensus target price of $12.00, suggesting a potential upside of 30.15%. As a group, “Professional Services” companies have a potential upside of 42.92%. Given TIC Solutions’ competitors stronger consensus rating and higher probable upside, analysts plainly believe TIC Solutions has less favorable growth aspects than its competitors.

Profitability

This table compares TIC Solutions and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TIC Solutions	-5.64%	-2.30%	-1.11%
TIC Solutions Competitors	-0.49%	20.33%	4.32%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
TIC Solutions	$2.05 billion	-$87.12 million	-15.90
TIC Solutions Competitors	$3.42 billion	$230.11 million	28.53

TIC Solutions’ competitors have higher revenue and earnings than TIC Solutions. TIC Solutions is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

TIC Solutions competitors beat TIC Solutions on 12 of the 13 factors compared.

About TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.