Comparing Argan (NYSE:AGX) and Connectm Technology Solutions (NASDAQ:CNTM)

Argan (NYSE:AGX) and Connectm Technology Solutions (NASDAQ:CNTM) are both small-cap construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Risk & Volatility

Argan has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Connectm Technology Solutions has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.

Profitability

This table compares Argan and Connectm Technology Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argan	6.11%	14.80%	6.93%
Connectm Technology Solutions	N/A	N/A	-20.55%

Insider and Institutional Ownership

79.4% of Argan shares are owned by institutional investors. Comparatively, 79.6% of Connectm Technology Solutions shares are owned by institutional investors. 11.9% of Argan shares are owned by company insiders. Comparatively, 21.2% of Connectm Technology Solutions shares are owned by company 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 Recommendations

This is a summary of recent recommendations for Argan and Connectm Technology Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argan	0	0	1	0	3.00
Connectm Technology Solutions	0	0	0	0	N/A

Argan currently has a consensus price target of $85.00, indicating a potential downside of 34.00%. Given Argan’s higher probable upside, equities analysts clearly believe Argan is more favorable than Connectm Technology Solutions.

Earnings & Valuation

This table compares Argan and Connectm Technology Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argan	$573.33 million	3.03	$32.36 million	$3.18	40.50
Connectm Technology Solutions	$19.42 million	0.13	-$14.94 million	$0.00	-474.99

Argan has higher revenue and earnings than Connectm Technology Solutions. Connectm Technology Solutions is trading at a lower price-to-earnings ratio than Argan, indicating that it is currently the more affordable of the two stocks.

Summary

Argan beats Connectm Technology Solutions on 11 of the 13 factors compared between the two stocks.

About Argan

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects 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 projects with approximately 18 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and other commercial firms. The Industrial Services segment provides industrial construction and field services and vessel fabrication services for fertilizer, engineering and construction, forest products, and various other industrial companies in southeast region of the United States. The Telecom Services segment offers trenchless 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 provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves electricity cooperative, state and local government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as federal government facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.

About Connectm Technology Solutions

ConnectM Technology Solutions, Inc., a technology company, focuses on advancing the electrification economy by integrating electrified energy assets with its AI-driven technology solutions platform. It provides residential and light commercial buildings, and all-electric original equipment manufacturers with a platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. The company was incorporated in 2021 and is headquartered in Marlborough, Massachusetts.