Analyzing Obayashi (OTCMKTS:OBYCF) & MYR Group (NASDAQ:MYRG)

Obayashi (OTCMKTS:OBYCF) and MYR Group (NASDAQ:MYRG) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Obayashi	6.70%	10.31%	4.24%
MYR Group	4.13%	24.17%	9.96%

Risk and Volatility

Obayashi has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, MYR Group has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Institutional & Insider Ownership

88.9% of MYR Group shares are held by institutional investors. 1.9% of MYR Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Obayashi and MYR Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obayashi	$17.18 billion	0.83	$1.15 billion	$1.67	12.02
MYR Group	$4.01 billion	1.31	$118.42 million	$10.54	32.08

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

Analyst Recommendations

This is a breakdown of recent recommendations for Obayashi and MYR Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obayashi	0	0	0	0	0.00
MYR Group	0	5	3	1	2.56

MYR Group has a consensus target price of $426.00, suggesting a potential upside of 25.98%. Given MYR Group’s stronger consensus rating and higher possible upside, analysts plainly believe MYR Group is more favorable than Obayashi.

Summary

MYR Group beats Obayashi on 12 of the 15 factors compared between the two stocks.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, river works, urban civil engineering structures, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in urban areas, as well as property management activities; solar, biomass, geothermal, and wind power generation business; and PPP and agriculture business. In addition, the company provides non-life insurance agency business. Further, it engages in the provision of urban redevelopment, contracted operations, and facility management services, as well as M&E design and construction activities. The company was founded in 1892 and is headquartered in Tokyo, Japan.

About MYR Group

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, clean energy projects, and electric vehicle charging infrastructure services, as well as emergency restoration services in response to hurricane, wildfire, ice, or other related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of intelligent transportation systems, roadway lighting, and signalization for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers. The company was founded in 1891 and is headquartered in Thornton, Colorado.