IES (NASDAQ:IESC) versus APi Group (NYSE:APG) Head-To-Head Analysis

APi Group (NYSE:APG) and IES (NASDAQ:IESC) are both large-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares APi Group and IES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
APi Group	3.99%	37.59%	14.07%
IES	11.40%	35.70%	19.68%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APi Group	$7.91 billion	2.29	$302.00 million	($0.67)	-62.67
IES	$3.37 billion	4.59	$303.06 million	$22.51	34.49

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

Institutional & Insider Ownership

86.6% of APi Group shares are owned by institutional investors. Comparatively, 86.6% of IES shares are owned by institutional investors. 18.7% of APi Group shares are owned by insiders. Comparatively, 56.4% of IES shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for APi Group and IES, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APi Group	0	2	6	1	2.89
IES	0	1	1	0	2.50

APi Group currently has a consensus target price of $52.57, indicating a potential upside of 25.20%. IES has a consensus target price of $458.00, indicating a potential downside of 41.01%. Given APi Group’s stronger consensus rating and higher probable upside, analysts plainly believe APi Group is more favorable than IES.

Volatility & Risk

APi Group has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, IES has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Summary

IES beats APi Group on 8 of the 15 factors compared between the two stocks.

About APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

About IES

IES Holdings, Inc. engages in the design and installation of integrated electrical and technology systems, and provides infrastructure products and services in the United States. The Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.