Beazer Homes USA (NYSE: BZH) and Emcor Group (NYSE:EME) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Volatility & Risk
Beazer Homes USA has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500. Comparatively, Emcor Group has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
This table compares Beazer Homes USA and Emcor Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Beazer Homes USA||-5.01%||7.99%||2.32%|
Institutional & Insider Ownership
90.2% of Beazer Homes USA shares are owned by institutional investors. Comparatively, 95.9% of Emcor Group shares are owned by institutional investors. 7.6% of Beazer Homes USA shares are owned by company insiders. Comparatively, 2.0% of Emcor Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings for Beazer Homes USA and Emcor Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beazer Homes USA||0||3||2||0||2.40|
Beazer Homes USA presently has a consensus price target of $21.33, suggesting a potential upside of 33.33%. Emcor Group has a consensus price target of $87.00, suggesting a potential upside of 15.42%. Given Beazer Homes USA’s stronger consensus rating and higher possible upside, research analysts clearly believe Beazer Homes USA is more favorable than Emcor Group.
Valuation & Earnings
This table compares Beazer Homes USA and Emcor Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Beazer Homes USA||$1.92 billion||0.28||$31.81 million||($3.06)||-5.23|
|Emcor Group||$7.69 billion||0.57||$227.19 million||$3.82||19.73|
Emcor Group has higher revenue and earnings than Beazer Homes USA. Beazer Homes USA is trading at a lower price-to-earnings ratio than Emcor Group, indicating that it is currently the more affordable of the two stocks.
Emcor Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Beazer Homes USA does not pay a dividend. Emcor Group pays out 8.4% of its earnings in the form of a dividend.
Emcor Group beats Beazer Homes USA on 10 of the 16 factors compared between the two stocks.
Beazer Homes USA Company Profile
Beazer Homes USA, Inc. is a geographically diversified homebuilder. As of September 30, 2016, the Company had operations in 13 states within over three geographic regions in the United States. The Company’s segments include West, East and Southeast. The Company markets and sells its products through its Website, www.beazer.com; mobile site, m.beazer.com; real estate listing sites, online advertising, including search engine marketing and display advertising, social media, video, brochures, direct marketing and out-of-home advertising, including billboards and signage, as well as other activities. It offers lender choice and personalization. The Company’s Choice Plans allows buyers to choose living areas, such as the kitchen and master bathroom. Its West segment includes Arizona, California, Nevada and Texas. Its East segment includes Indiana, Maryland/Delaware, Tennessee and Virginia. Its Southeast segment includes Florida, Georgia, North Carolina and South Carolina.
Emcor Group Company Profile
EMCOR Group, Inc. is an electrical and mechanical construction, and facilities services firm in the United States. The Company provides building services and industrial services. Its segments are United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services, and United Kingdom building services. As of December 31, 2016, its services were provided to a range of commercial, industrial, utility and institutional customers through approximately 75 operating subsidiaries and joint venture entities. It is providing construction services relating to electrical and mechanical systems in various types of non-residential and certain residential facilities, and in providing services relating to the operation, maintenance and management of facilities, including refineries and petrochemical plants. It operates various electrical and mechanical systems.
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