Analyzing EMCOR Group (NYSE:EME) and Everus Construction Group (NYSE:ECG)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for EMCOR Group and Everus Construction Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EMCOR Group	0	3	7	0	2.70
Everus Construction Group	0	3	4	2	2.89

EMCOR Group presently has a consensus target price of $902.88, suggesting a potential upside of 40.12%. Everus Construction Group has a consensus target price of $154.17, suggesting a potential upside of 80.04%. Given Everus Construction Group’s stronger consensus rating and higher probable upside, analysts clearly believe Everus Construction Group is more favorable than EMCOR Group.

Volatility & Risk

EMCOR Group has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Everus Construction Group has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500.

Valuation and Earnings

This table compares EMCOR Group and Everus Construction Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EMCOR Group	$16.99 billion	1.66	$1.27 billion	$34.62	18.61
Everus Construction Group	$3.75 billion	1.17	$201.77 million	$5.65	15.16

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

Institutional & Insider Ownership

92.6% of EMCOR Group shares are owned by institutional investors. 0.7% of EMCOR Group shares are owned by insiders. Comparatively, 0.3% of Everus Construction Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares EMCOR Group and Everus Construction Group’s 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%
Everus Construction Group	6.20%	39.18%	13.88%

Summary

EMCOR Group beats Everus Construction Group on 10 of the 15 factors compared between the two stocks.

About EMCOR Group

EMCOR Group is a provider of mechanical and electrical construction and facilities services. Through its operating companies, it designs, installs, maintains and upgrades building systems and related infrastructure for commercial, industrial, institutional and government customers. Its services include heating, ventilation and air conditioning; electrical and power systems; plumbing and piping; building automation; energy infrastructure; and ongoing facilities management. The company also provides industrial services, such as maintenance and support for process and manufacturing facilities.

About Everus Construction Group

Everus Construction Group provides construction services for commercial, industrial, institutional and utility customers. Its work includes electrical and mechanical construction, fire protection, and the building and maintenance of infrastructure for energy and utility systems. The company also performs utility and civil construction, including work on electric transmission and distribution lines, underground utilities, pipelines, water and sewer systems, and transportation-related infrastructure.