IES (NASDAQ: IESC) and USD Partners (NYSE:USDP) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
78.5% of IES shares are held by institutional investors. Comparatively, 30.5% of USD Partners shares are held by institutional investors. 61.7% of IES shares are held by insiders. Comparatively, 2.6% of USD Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
USD Partners pays an annual dividend of $1.40 per share and has a dividend yield of 12.6%. IES does not pay a dividend. USD Partners pays out 152.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. USD Partners has increased its dividend for 2 consecutive years.
Earnings & Valuation
This table compares IES and USD Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IES||$810.70 million||0.41||$13.42 million||($0.96)||-16.25|
|USD Partners||$111.13 million||2.63||$24.17 million||$0.92||12.07|
USD Partners has lower revenue, but higher earnings than IES. IES is trading at a lower price-to-earnings ratio than USD Partners, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
IES has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, USD Partners has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for IES and USD Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
USD Partners has a consensus price target of $14.00, suggesting a potential upside of 26.13%. Given USD Partners’ higher probable upside, analysts clearly believe USD Partners is more favorable than IES.
This table compares IES and USD Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
USD Partners beats IES on 12 of the 16 factors compared between the two stocks.
IES Holdings, Inc., formerly Integrated Electrical Services, Inc., is a holding company that owns and manages diverse operating subsidiaries across a range of infrastructure-related end markets. The Company operates through four segments: Communications, Residential, Commercial & Industrial, and Infrastructure Solutions. The Communications segment provides network infrastructure services for data centers and other mission critical environments. The Residential segment provides electrical installation services for single-family housing and multi-family apartment complexes and cable television installations for residential and light commercial applications. The Commercial & Industrial segment provides electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets. The Company’s Infrastructure Solutions segment provides electro-mechanical solutions for industrial operations to domestic and international customers.
About USD Partners
USD Partners LP acquires, develops and operates energy-related logistics assets, including rail terminals and other midstream infrastructure. The Company’s segments include Terminalling services and Fleet services. The Terminalling services segment consists of various operations, including Hardisty terminal, Casper terminal and Ethanol terminals. Its Hardisty terminal is an origination terminal where it loads various grades of Canadian crude oil onto railcars for transportation to end markets. The Casper terminal is a crude oil storage, blending and railcar loading terminal located in Casper, Wyoming. Its San Antonio and West Colton terminals are unit train-capable destination terminals that transload ethanol received by rail from producers onto trucks to meet local ethanol demand. The Company provides its customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under master fleet services agreements.
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