Critical Analysis: MYR Group (NASDAQ:MYRG) versus Tutor Perini (NYSE:TPC)

Tutor Perini (NYSE:TPC) and MYR Group (NASDAQ:MYRG) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares Tutor Perini and MYR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tutor Perini	2.08%	20.95%	5.15%
MYR Group	4.13%	24.17%	9.96%

Insider and Institutional Ownership

65.0% of Tutor Perini shares are held by institutional investors. Comparatively, 88.9% of MYR Group shares are held by institutional investors. 15.4% of Tutor Perini shares are held by company insiders. Comparatively, 1.9% of MYR Group shares are held 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.

Analyst Ratings

This is a summary of recent ratings for Tutor Perini and MYR Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tutor Perini	0	1	3	0	2.75
MYR Group	0	4	3	1	2.62

Tutor Perini currently has a consensus target price of $105.00, indicating a potential upside of 35.38%. MYR Group has a consensus target price of $424.80, indicating a potential upside of 51.63%. Given MYR Group’s higher probable upside, analysts clearly believe MYR Group is more favorable than Tutor Perini.

Risk and Volatility

Tutor Perini has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, MYR Group has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tutor Perini and MYR Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tutor Perini	$5.54 billion	0.74	$80.44 million	$2.32	33.43
MYR Group	$3.66 billion	1.19	$118.42 million	$10.54	26.58

MYR Group has lower revenue, but higher earnings than Tutor Perini. MYR Group is trading at a lower price-to-earnings ratio than Tutor Perini, indicating that it is currently the more affordable of the two stocks.

Summary

MYR Group beats Tutor Perini on 9 of the 14 factors compared between the two stocks.

About Tutor Perini

Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies in the United States and internationally. It operates through three segments: Civil, Building, and Specialty Contractors. The Civil segment engages in the public works construction and the replacement and reconstruction of infrastructure; and offers contracting services, including construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities, as well as provides drilling, foundation, and excavation support for shoring, bridges, piers, roads, and highway projects. The Building segment offers range of services in various specialized building markets, such as hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional and detention facilities, biotech, pharmaceutical, industrial, and technology. The Specialty Contractors segment provides electrical, mechanical, plumbing, and fire protection systems, as well as heating, ventilation, and air conditioning services (HVAC) for civil and building construction projects in industrial, commercial, hospitality and gaming, and mass-transit end markets. It also offers pre-construction planning and project management services comprising planning and scheduling of the manpower, equipment, materials, and subcontractor services; and self-performed construction services consisting of site work, concrete forming and placement, and steel erection. The company was formerly known as Perini Corporation and changed its name to Tutor Perini Corporation in May 2009. Tutor Perini Corporation was founded in 1894 and is headquartered in Sylmar, California.

About MYR Group

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, clean energy projects, and electric vehicle charging infrastructure services, as well as emergency restoration services in response to hurricane, wildfire, ice, or other related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of intelligent transportation systems, roadway lighting, and signalization for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers. The company was founded in 1891 and is headquartered in Thornton, Colorado.