Head to Head Analysis: Sterling Infrastructure (NASDAQ:STRL) vs. EMCOR Group (NYSE:EME)

Sterling Infrastructure (NASDAQ:STRL) and EMCOR Group (NYSE:EME) are both large-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Earnings and Valuation

This table compares Sterling Infrastructure and EMCOR Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sterling Infrastructure	$2.49 billion	6.35	$290.15 million	$13.87	37.24
EMCOR Group	$16.99 billion	1.96	$1.27 billion	$32.15	23.50

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

Profitability

This table compares Sterling Infrastructure and EMCOR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sterling Infrastructure	12.55%	40.12%	17.15%
EMCOR Group	7.74%	35.49%	14.12%

Analyst Ratings

This is a breakdown of recent recommendations for Sterling Infrastructure and EMCOR Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sterling Infrastructure	0	2	6	0	2.75
EMCOR Group	0	1	7	1	3.00

Sterling Infrastructure currently has a consensus price target of $690.33, suggesting a potential upside of 33.64%. EMCOR Group has a consensus price target of $965.86, suggesting a potential upside of 27.83%. Given Sterling Infrastructure’s higher possible upside, equities research analysts plainly believe Sterling Infrastructure is more favorable than EMCOR Group.

Institutional and Insider Ownership

80.9% of Sterling Infrastructure shares are held by institutional investors. Comparatively, 92.6% of EMCOR Group shares are held by institutional investors. 1.6% of Sterling Infrastructure shares are held by company insiders. Comparatively, 0.7% of EMCOR Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Sterling Infrastructure has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, EMCOR Group has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

Sterling Infrastructure beats EMCOR Group on 8 of the 15 factors compared between the two stocks.

About Sterling Infrastructure

Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions primarily in the United States. It operates through three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors. The Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads. The Building Solutions segment provides residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work for developers and general contractors, as well as provides plumbing services for residential builds. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.

About EMCOR Group

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.