Head to Head Analysis: MasTec (NYSE:MTZ) vs. Brookfield Business (NYSE:BBUC)

MasTec (NYSE:MTZ) and Brookfield Business (NYSE:BBUC) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

78.1% of MasTec shares are held by institutional investors. Comparatively, 85.0% of Brookfield Business shares are held by institutional investors. 21.4% of MasTec shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

MasTec has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Brookfield Business has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Earnings & Valuation

This table compares MasTec and Brookfield Business”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MasTec	$14.30 billion	1.07	$399.04 million	$6.27	30.41
Brookfield Business	$27.46 billion	0.19	-$26.00 million	($0.39)	-66.68

MasTec has higher earnings, but lower revenue than Brookfield Business. Brookfield Business is trading at a lower price-to-earnings ratio than MasTec, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MasTec and Brookfield Business’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MasTec	3.07%	18.08%	5.97%
Brookfield Business	1.13%	2.05%	0.40%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MasTec and Brookfield Business, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MasTec	0	3	19	0	2.86
Brookfield Business	1	2	4	0	2.43

MasTec currently has a consensus target price of $376.85, indicating a potential upside of 97.68%. Brookfield Business has a consensus target price of $36.83, indicating a potential upside of 41.63%. Given MasTec’s stronger consensus rating and higher probable upside, equities research analysts plainly believe MasTec is more favorable than Brookfield Business.

Summary

MasTec beats Brookfield Business on 11 of the 13 factors compared between the two stocks.

About MasTec

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company build infrastructure for wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; pipeline infrastructure, including natural gas, water, carbon capture sequestration, and other product transport; power delivery services, such as electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure, including roads, bridges, and rail; and water infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation, power generation, civil and industrial facilities, pipelines, and fiber optic and other cables, as well as install-to-the-home services. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and civil and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, including renewable and other energy providers, pipeline operators, civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

About Brookfield Business

Brookfield Business Corporation focuses on healthcare, construction, and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada, and Brazil. It operates through three segments: Business Services, Infrastructure Services, and Industrials. The company operates 42 hospitals; offers construction services for office, residential, hospitality and leisure, social infrastructure, retail, and mixed-use properties; and provides nuclear technology services, such as fuel, maintenance services, engineering solutions, instrumentation and control systems, and manufactured components for nuclear power plants. It also engages in the collection, treatment, and distribution of water and wastewater to the residential and governmental customers. The company was incorporated in 2021 and is headquartered in New York, New York.