Argan (NYSE:AGX) and Concrete Pumping (NASDAQ:BBCP) are both small-cap construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
This table compares Argan and Concrete Pumping’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
85.0% of Argan shares are owned by institutional investors. Comparatively, 8.3% of Concrete Pumping shares are owned by institutional investors. 7.5% of Argan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for Argan and Concrete Pumping, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Argan currently has a consensus target price of $62.00, indicating a potential upside of 27.52%. Concrete Pumping has a consensus target price of $12.00, indicating a potential upside of 84.62%. Given Concrete Pumping’s higher possible upside, analysts clearly believe Concrete Pumping is more favorable than Argan.
Risk and Volatility
Argan has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Concrete Pumping has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.
Earnings and Valuation
This table compares Argan and Concrete Pumping’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Argan||$482.15 million||1.57||$52.04 million||N/A||N/A|
|Concrete Pumping||$243.22 million||0.77||-$7.11 million||$2.47||2.63|
Argan has higher revenue and earnings than Concrete Pumping.
Argan pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Concrete Pumping does not pay a dividend. Argan has increased its dividend for 2 consecutive years.
Argan beats Concrete Pumping on 12 of the 13 factors compared between the two stocks.
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, development, technical, and consulting services to the power generation and renewable energy markets. The company's Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for 44 projects with approximately 15,000 megawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and global energy plant construction firms. Its Industrial Fabrication and Field Services segment provides industrial steel fabrication and field services to light and heavy industrial organizations that comprise forest products, power, large fertilizer, and mining and petrochemical companies in southern region of the United States. The company's Telecommunications Infrastructure Services segment offers outside plant cabling services, including trench-less directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also offers inside premises wiring services consisting of structuring, cabling, terminations, and connectivity that provide the physical transport for high speed data, voice, video, and security networks. This segment serves state and local government agencies, regional communications service providers, electric utilities, other commercial customers, and federal government facilities, including cleared facilities in the mid-Atlantic region. Argan, Inc. was founded in 1961 and is headquartered in Rockville, Maryland.
About Concrete Pumping
Concrete Pumping Holdings, Inc. provides concrete pumping and concrete waste management services. The company offers concrete pumping services under the Brundage-Bone brand and concrete waste management services under the Eco-Pan brand in the United States; and concrete pumping services under the Camfaud brand in the United Kingdom. Its customers include commercial, infrastructure, and residential construction markets. The company is based in Denver, Colorado.
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