Financial Survey: EMCOR Group (NYSE:EME) vs. MasTec (NYSE:MTZ)

MasTec (NYSE:MTZ) and EMCOR Group (NYSE:EME) are both large-cap construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Profitability

This table compares MasTec and EMCOR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MasTec	1.72%	11.65%	3.80%
EMCOR Group	7.00%	37.12%	14.01%

Earnings & Valuation

This table compares MasTec and EMCOR Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MasTec	$12.30 billion	1.07	$162.79 million	$2.72	61.24
EMCOR Group	$14.57 billion	1.52	$1.01 billion	$22.63	21.89

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

Insider and Institutional Ownership

78.1% of MasTec shares are held by institutional investors. Comparatively, 92.6% of EMCOR Group shares are held by institutional investors. 21.3% of MasTec shares are held by company insiders. Comparatively, 1.3% of EMCOR Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for MasTec and EMCOR Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MasTec	0	2	14	1	2.94
EMCOR Group	1	0	4	0	2.60

MasTec currently has a consensus target price of $166.75, indicating a potential upside of 0.11%. EMCOR Group has a consensus target price of $509.60, indicating a potential upside of 2.89%. Given EMCOR Group’s higher probable upside, analysts plainly believe EMCOR Group is more favorable than MasTec.

Volatility & Risk

MasTec has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, EMCOR Group has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Summary

EMCOR Group beats MasTec on 9 of the 15 factors compared between the two stocks.

About MasTec

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company build infrastructure for wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; pipeline infrastructure, including natural gas, water, carbon capture sequestration, and other product transport; power delivery services, such as electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure, including roads, bridges, and rail; and water infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation, power generation, civil and industrial facilities, pipelines, and fiber optic and other cables, as well as install-to-the-home services. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and civil and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, including renewable and other energy providers, pipeline operators, civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

About EMCOR Group

EMCOR Group, Inc. provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that covers commercial and government site-based operations and maintenance; facility management, maintenance, and services; energy efficiency retrofit services; military base operations support services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; modification and retrofit projects; and other building services, including reception, security, and catering services. In addition, it offers refinery turnaround planning and engineering; welding; overhaul and maintenance; instrumentation and electrical; and renewable energy services. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.