Head to Head Review: Quanta Services (NYSE:PWR) versus Monadelphous Group (OTCMKTS:MOPHY)

Monadelphous Group (OTCMKTS:MOPHY) and Quanta Services (NYSE:PWR) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Monadelphous Group and Quanta Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monadelphous Group	0	0	0	0	0.00
Quanta Services	3	8	20	1	2.59

Quanta Services has a consensus price target of $769.25, indicating a potential upside of 27.45%. Given Quanta Services’ stronger consensus rating and higher probable upside, analysts clearly believe Quanta Services is more favorable than Monadelphous Group.

Valuation & Earnings

This table compares Monadelphous Group and Quanta Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monadelphous Group	N/A	N/A	N/A	C$1.59	12.27
Quanta Services	$32.91 billion	2.76	$1.03 billion	$8.73	69.14

Quanta Services has higher revenue and earnings than Monadelphous Group. Monadelphous Group is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

2.9% of Monadelphous Group shares are owned by institutional investors. Comparatively, 90.5% of Quanta Services shares are owned by institutional investors. 0.6% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Monadelphous Group pays an annual dividend of C$0.54 per share and has a dividend yield of 2.8%. Quanta Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.1%. Monadelphous Group pays out 34.2% of its earnings in the form of a dividend. Quanta Services pays out 5.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Quanta Services has increased its dividend for 6 consecutive years.

Profitability

This table compares Monadelphous Group and Quanta Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monadelphous Group	N/A	N/A	N/A
Quanta Services	4.03%	20.55%	7.34%

Summary

Quanta Services beats Monadelphous Group on 14 of the 15 factors compared between the two stocks.

About Monadelphous Group

Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to resources, energy, and infrastructure industries in Australia, Chile, Mongolia, Papua New Guinea, and internationally. It operates through Engineering Construction, and Maintenance and Industrial Services divisions. The company offers fabrication, modularization, offsite pre-assembly, procurement, and installation of structural steel, tankage, mechanical and process equipment, piping, demolition, and remediation works; multi-disciplined construction services; plant commissioning; electrical and instrumentation services; engineering, procurement, and construction services; process and non-process maintenance services; and front-end scoping, shutdown planning, management, and execution services. It also provides water and wastewater asset construction and maintenance; transmission pipelines and facilities construction; power and water assets operation and maintenance; heavy lift and specialist transport; access solutions; dewatering services; corrosion management services; specialist coatings; rail maintenance services; and insulation and cladding services. In addition, it offers turnkey design and construction, heavy lift and crane, and civil and electrical services. The company was founded in 1972 and is headquartered in Perth, Australia.

About Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.