Analyzing IES (NASDAQ:IESC) & Everus Construction Group (NYSE:ECG)

Everus Construction Group (NYSE:ECG) and IES (NASDAQ:IESC) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Valuation & Earnings

This table compares Everus Construction Group and IES”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everus Construction Group	$3.75 billion	1.56	$201.77 million	$4.97	23.04
IES	$3.37 billion	3.22	$303.06 million	$11.26	24.19

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

Profitability

This table compares Everus Construction Group and IES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everus Construction Group	5.96%	38.22%	14.02%
IES	11.40%	35.70%	19.68%

Risk and Volatility

Everus Construction Group has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500. Comparatively, IES has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Institutional & Insider Ownership

86.6% of IES shares are owned by institutional investors. 0.3% of Everus Construction Group shares are owned by insiders. Comparatively, 56.4% of IES shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Everus Construction Group and IES, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everus Construction Group	0	4	4	1	2.67
IES	0	1	2	0	2.67

Everus Construction Group presently has a consensus price target of $169.50, suggesting a potential upside of 48.02%. IES has a consensus price target of $334.50, suggesting a potential upside of 22.81%. Given Everus Construction Group’s higher possible upside, equities research analysts clearly believe Everus Construction Group is more favorable than IES.

Summary

IES beats Everus Construction Group on 8 of the 14 factors compared between the two stocks.

About Everus Construction Group

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.

About IES

IES Holdings, Inc. engages in the design and installation of integrated electrical and technology systems, and provides infrastructure products and services in the United States. The Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.