Analyzing Matrix Service (MTRX) and The Competition

Matrix Service (NASDAQ:MTRX) is one of 188 public companies in the “Construction & Engineering” industry, but how does it contrast to its peers? We will compare Matrix Service to similar companies based on the strength of its earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Matrix Service and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Matrix Service	$873.63 million	-$2.58 million	35.54
Matrix Service Competitors	$9.62 billion	$456.60 million	-5,814.46

Matrix Service’s peers have higher revenue and earnings than Matrix Service. Matrix Service is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

78.4% of Matrix Service shares are held by institutional investors. Comparatively, 48.9% of shares of all “Construction & Engineering” companies are held by institutional investors. 1.9% of Matrix Service shares are held by company insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies 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.

Risk & Volatility

Matrix Service has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Matrix Service’s peers have a beta of 1.60, suggesting that their average stock price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Matrix Service and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matrix Service	1	0	1	1	2.67
Matrix Service Competitors	854	3471	7365	365	2.60

Matrix Service presently has a consensus target price of $16.50, suggesting a potential upside of 78.57%. As a group, “Construction & Engineering” companies have a potential upside of 40.34%. Given Matrix Service’s stronger consensus rating and higher possible upside, analysts plainly believe Matrix Service is more favorable than its peers.

Profitability

This table compares Matrix Service and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matrix Service	0.83%	9.98%	2.32%
Matrix Service Competitors	-3.91%	2.80%	3.85%

Summary

Matrix Service beats its peers on 7 of the 13 factors compared.

About Matrix Service

Matrix Service Company provides engineering, construction, maintenance and repair services for energy and industrial infrastructure. Its work includes the design and construction of storage tanks and terminals, as well as services for power, refining, petrochemical and other industrial facilities. The company serves customers in North America and select international markets. Its projects and services support the storage and movement of energy products, utility and power infrastructure, and the operation and upkeep of industrial facilities.