Financial Analysis: Alfa Laval (OTCMKTS:ALFVY) and MYR Group (NASDAQ:MYRG)

MYR Group (NASDAQ:MYRG) and Alfa Laval (OTCMKTS:ALFVY) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares MYR Group and Alfa Laval’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MYR Group	4.13%	24.17%	9.96%
Alfa Laval	11.63%	18.41%	8.16%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for MYR Group and Alfa Laval, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MYR Group	0	4	2	2	2.75
Alfa Laval	1	2	4	0	2.43

MYR Group currently has a consensus price target of $451.20, suggesting a potential upside of 57.44%. Given MYR Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe MYR Group is more favorable than Alfa Laval.

Insider & Institutional Ownership

88.9% of MYR Group shares are owned by institutional investors. Comparatively, 0.0% of Alfa Laval shares are owned by institutional investors. 1.9% of MYR Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MYR Group and Alfa Laval”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MYR Group	$3.66 billion	1.22	$118.42 million	$10.54	27.19
Alfa Laval	$7.12 billion	3.37	$845.40 million	$2.11	27.52

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

Volatility & Risk

MYR Group has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Alfa Laval has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

MYR Group beats Alfa Laval on 9 of the 15 factors compared between the two stocks.

About MYR Group

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, clean energy projects, and electric vehicle charging infrastructure services, as well as emergency restoration services in response to hurricane, wildfire, ice, or other related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of intelligent transportation systems, roadway lighting, and signalization for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers. The company was founded in 1891 and is headquartered in Thornton, Colorado.

About Alfa Laval

Alfa Laval Corporate AB provides heat transfer, separation, and fluid handling products and solutions worldwide. It operates in three divisions: Energy, Food & Water, and Marine. The company offers oil/gas-fired steam and composite steam boilers, exhaust gas economizer, and ballast water treatment systems, and exhaust gas cleaning products. It also provides sensing and control, cleaning validation, condition monitoring, agitators, tank, powder mixers, fittings, and tubes, as well as wall mounted cleaning nozzles, rotary jet and heads; and tank accessories and covers. In addition, the company offers centrifugal, rotary lobe, three screw, twin screw, and circumferential piston pumps. Further, it provides butterfly, control and check, double seal, diaphragm, double seat, regulating, safety, sampling, shutter, single seat, and ball valves. Additionally, the company offers heat exchanger, tube-in-tube heat exchangers, and process shell-and-tube heat exchangers. Furthermore, it provides finned tube air heat, scraped surface heat exchangers, and various plate heat exchangers, wet surface, and HYAC hybrid air coolers. The company also offers decanters and separator related products. It serves energy, utilities, home, personal care, food, dairy, beverage, marine, transportation, pharmaceutical, biotech, water, and wastewater industries. Alfa Laval Corporate AB was founded in 1883 and is headquartered in Lund, Sweden.