Analyzing Granite Construction (NYSE:GVA) & Arcadis (OTCMKTS:ARCVF)

Granite Construction (NYSE:GVA) and Arcadis (OTCMKTS:ARCVF) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Institutional and Insider Ownership

27.0% of Arcadis shares are owned by institutional investors. 0.9% of Granite Construction shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Granite Construction and Arcadis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Construction	$4.42 billion	1.25	$193.00 million	($4.31)	-29.42
Arcadis	N/A	N/A	N/A	$1.34	37.12

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Granite Construction and Arcadis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Construction	2	1	2	1	2.33
Arcadis	0	0	0	0	0.00

Granite Construction presently has a consensus target price of $158.50, indicating a potential upside of 25.00%. Given Granite Construction’s stronger consensus rating and higher possible upside, research analysts clearly believe Granite Construction is more favorable than Arcadis.

Profitability

This table compares Granite Construction and Arcadis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Construction	-3.32%	27.83%	7.17%
Arcadis	N/A	N/A	N/A

Summary

Granite Construction beats Arcadis on 8 of the 12 factors compared between the two stocks.

About Granite Construction

Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar storage, and power related projects. The Materials segment is involved in the production of aggregates, asphalt concrete, liquid asphalt, and recycled materials production for internal use in our construction projects and sale to third parties. It also offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, railways, residential development, and energy development; and provides construction management professional services. It serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was incorporated in 1922 and is headquartered in Watsonville, California.

About Arcadis

Arcadis NV offers design, engineering, and consultancy solutions for natural and built assets in The Americas, Europe, the Middle East, and the Asia Pacific. It operates through Places, Mobility, Resilience, and Intelligence segments. The company offers architectural and urbanism services; and asset management services, such as asset management strategy and planning, asset management decision making and operational optimization, life cycle planning and asset management systems, asset information/condition assessment, risk and review, organization and people, and asset management/O&M. It also provides business advisory services, including asset strategy and performance, business transformation and resiliency, investment and finance, operations and maintenance, and technology and information; contract solutions; cost and commercial management services; and design and engineering solutions for highways, railways, bridges, tunnels, power utilities, water utilities, ports and waterways, geotechnics, architecture, and structures, as well as building mechanical, electrical, and plumbing. In addition, the company offers digital environmental health safety and sustainability, environmental restoration, and project management solutions. Further, it provides mobility solutions for connected highways, intelligent rail and transit, integrated airports, and new mobility; places solutions; resilience solutions, such as energy transition, climate adaption, water optimization, enviro socio permitting, sustainable advisory, environmental restoration, and sustainable operations; and water supply and treatment, distribution, resource management, and industrial water and wastewater services. The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997. Arcadis NV was founded in 1888 and is headquartered in Amsterdam, the Netherlands.