EMCOR Group (EME) vs. Its Peers Critical Contrast

EMCOR Group (NYSE:EME) is one of 188 publicly-traded companies in the “Construction & Engineering” industry, but how does it compare to its peers? We will compare EMCOR Group to related businesses based on the strength of its risk, analyst recommendations, earnings, institutional ownership, valuation, profitability and dividends.

Risk and Volatility

EMCOR Group has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, EMCOR Group’s peers have a beta of 1.60, indicating that their average stock price is 60% more volatile than the S&P 500.

Insider & Institutional Ownership

92.6% of EMCOR Group shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Construction & Engineering” companies are owned by institutional investors. 0.7% of EMCOR Group shares are owned by insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares EMCOR Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EMCOR Group	7.78%	36.65%	14.50%
EMCOR Group Competitors	-3.99%	2.77%	3.82%

Earnings and Valuation

This table compares EMCOR Group and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
EMCOR Group	$16.99 billion	$1.27 billion	17.54
EMCOR Group Competitors	$10.73 billion	$456.60 million	-5,802.31

EMCOR Group has higher revenue and earnings than its peers. EMCOR Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

EMCOR Group pays an annual dividend of $1.60 per share and has a dividend yield of 0.3%. EMCOR Group pays out 4.6% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 2.4% and pay out 25.4% of their earnings in the form of a dividend. EMCOR Group has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for EMCOR Group and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EMCOR Group	0	2	7	0	2.78
EMCOR Group Competitors	850	3465	7352	362	2.60

EMCOR Group currently has a consensus price target of $931.86, indicating a potential upside of 53.42%. As a group, “Construction & Engineering” companies have a potential upside of 49.19%. Given EMCOR Group’s stronger consensus rating and higher probable upside, analysts plainly believe EMCOR Group is more favorable than its peers.

Summary

EMCOR Group beats its peers on 11 of the 15 factors compared.

EMCOR Group Company Profile

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.