Analyzing Comfort Systems USA (FIX) & MYR Group (MYRG)

Comfort Systems USA (NYSE: FIX) and MYR Group (NASDAQ:MYRG) are both small-cap construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Profitability

This table compares Comfort Systems USA and MYR Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comfort Systems USA 3.84% 16.94% 8.80%
MYR Group 1.74% 8.08% 3.94%

Valuation and Earnings

This table compares Comfort Systems USA and MYR Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Comfort Systems USA $1.63 billion 0.81 $124.65 million $1.66 21.48
MYR Group $1.19 billion 0.43 $73.33 million $1.24 25.16

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

Risk & Volatility

Comfort Systems USA has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, MYR Group has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Comfort Systems USA and MYR Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comfort Systems USA 0 2 3 0 2.60
MYR Group 0 1 4 0 2.80

Comfort Systems USA currently has a consensus price target of $59.50, suggesting a potential upside of 66.90%. MYR Group has a consensus price target of $35.50, suggesting a potential upside of 13.78%. Given Comfort Systems USA’s higher probable upside, equities analysts plainly believe Comfort Systems USA is more favorable than MYR Group.

Institutional & Insider Ownership

94.5% of Comfort Systems USA shares are held by institutional investors. Comparatively, 88.7% of MYR Group shares are held by institutional investors. 3.5% of Comfort Systems USA shares are held by company insiders. Comparatively, 5.0% of MYR Group shares are held 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.

Dividends

Comfort Systems USA pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. MYR Group does not pay a dividend. Comfort Systems USA pays out 18.1% of its earnings in the form of a dividend. Comfort Systems USA has raised its dividend for 4 consecutive years.

Summary

Comfort Systems USA beats MYR Group on 12 of the 17 factors compared between the two stocks.

Comfort Systems USA Company Profile

Comfort Systems USA, Inc. is a provider of mechanical contracting services, which principally includes heating, ventilation and air conditioning (HVAC), plumbing, piping and controls, as well as off-site construction, electrical, monitoring and fire protection. As of December 31, 2016, the Company installed, maintained, repaired and replaced products and systems throughout its 35 operating units in 84 cities and 91 locations throughout the United States. The Company operates primarily in the commercial, industrial and institutional HVAC markets and offers services in the industrial, healthcare, education, office, technology, retail and government facilities. The Company provides a range of construction, renovation, expansion, maintenance, repair and replacement services for mechanical and related systems in commercial, industrial and institutional properties. The Company also provides remote monitoring of temperature, pressure, humidity and air flow for HVAC systems.

MYR Group Company Profile

MYR Group Inc. is a holding company. The Company, through its subsidiaries, provides specialty electrical construction services. The Company performs construction services in two segments: Transmission and Distribution (T&D), and Commercial and Industrial (C&I). The Company provides C&I electrical contracting services to general contractors, commercial and industrial facility owners, local governments and developers in the western and northeastern United States and western Canada. The Company’s T&D segment serves the T&D sector of the electric utility industry. The Company provides a range of services on electric transmission and distribution networks and substation facilities, such as design, engineering, procurement, construction and upgrade. The Company’s C&I segment provides services, such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting.

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