Contrasting Everus Construction Group (NYSE:ECG) and Latham Group (NASDAQ:SWIM)

Latham Group (NASDAQ:SWIM) and Everus Construction Group (NYSE:ECG) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Latham Group	1.55%	2.13%	1.02%
Everus Construction Group	5.65%	37.17%	13.38%

Volatility and Risk

Latham Group has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Everus Construction Group has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Latham Group and Everus Construction Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latham Group	2	3	2	0	2.00
Everus Construction Group	0	5	3	1	2.56

Latham Group currently has a consensus price target of $7.50, indicating a potential upside of 36.36%. Everus Construction Group has a consensus price target of $155.67, indicating a potential upside of 12.64%. Given Latham Group’s higher possible upside, equities research analysts plainly believe Latham Group is more favorable than Everus Construction Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latham Group	$545.91 million	1.18	$11.12 million	$0.07	78.57
Everus Construction Group	$3.75 billion	1.88	$201.77 million	$4.36	31.70

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

Institutional and Insider Ownership

84.0% of Latham Group shares are held by institutional investors. 3.3% of Latham Group shares are held by insiders. Comparatively, 0.3% of Everus Construction Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Everus Construction Group beats Latham Group on 11 of the 15 factors compared between the two stocks.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

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.