Contrasting Everus Construction Group (NYSE:ECG) and Construction Partners (NASDAQ:ROAD)

Construction Partners (NASDAQ:ROAD) and Everus Construction Group (NYSE:ECG) are both mid-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares Construction Partners and Everus Construction Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Construction Partners	$2.81 billion	2.52	$101.78 million	$2.20	56.96
Everus Construction Group	$3.75 billion	2.06	$201.77 million	$3.94	38.47

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

Volatility & Risk

Construction Partners has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Everus Construction Group has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500.

Insider and Institutional Ownership

94.8% of Construction Partners shares are held by institutional investors. 15.7% of Construction Partners shares are held by insiders. Comparatively, 0.3% of Everus Construction Group shares are held by 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.

Profitability

This table compares Construction Partners and Everus Construction Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Construction Partners	3.99%	15.26%	4.40%
Everus Construction Group	5.39%	37.06%	13.04%

Analyst Ratings

This is a summary of current recommendations and price targets for Construction Partners and Everus Construction Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Construction Partners	0	2	4	1	2.86
Everus Construction Group	0	5	3	0	2.38

Construction Partners currently has a consensus target price of $132.40, indicating a potential upside of 5.65%. Everus Construction Group has a consensus target price of $126.33, indicating a potential downside of 16.65%. Given Construction Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Construction Partners is more favorable than Everus Construction Group.

Summary

Construction Partners beats Everus Construction Group on 8 of the 15 factors compared between the two stocks.

About Construction Partners

Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2007 and is headquartered in Dothan, Alabama.

About Everus Construction Group

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.