Analyzing MasTec (MTZ) & MYR Group (NASDAQ:MYRG)

MasTec (NYSE: MTZ) and MYR Group (NASDAQ:MYRG) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitabiliy, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares MasTec and MYR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MasTec	3.29%	18.02%	6.06%
MYR Group	1.74%	8.08%	3.94%

Valuation & Earnings

This table compares MasTec and MYR Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
MasTec	$5.32 billion	0.70	$532.44 million	$2.15	21.07
MYR Group	$1.19 billion	0.43	$73.33 million	$1.24	25.24

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

Insider and Institutional Ownership

69.1% of MasTec shares are held by institutional investors. Comparatively, 88.7% of MYR Group shares are held by institutional investors. 20.3% of MasTec shares are held by company insiders. Comparatively, 5.0% of MYR Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

MasTec has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, MYR Group has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for MasTec and MYR Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MasTec	0	5	7	0	2.58
MYR Group	0	1	4	0	2.80

MasTec presently has a consensus target price of $42.00, suggesting a potential downside of 7.28%. MYR Group has a consensus target price of $35.50, suggesting a potential upside of 13.42%. Given MYR Group’s stronger consensus rating and higher possible upside, analysts clearly believe MYR Group is more favorable than MasTec.

Summary

MasTec beats MYR Group on 10 of the 14 factors compared between the two stocks.

MasTec Company Profile

MasTec, Inc. is an infrastructure construction company. The Company operates primarily across North America through a range of industries. The Company operates through five segments: Communications, Oil and Gas, Electrical Transmission, Power Generation and Industrial, and Other. Its primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy and utility infrastructure, such as wireless, wireline/fiber, satellite communications and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; conventional and renewable power generation, and industrial infrastructure. The Company offered its services primarily under the MasTec service mark and had operations across 510 locations as of December 31, 2016. It provides services under master service and other service agreements, which are generally multi-year agreements.

MYR Group Company Profile

MYR Group Inc. is a holding company. The Company, through its subsidiaries, provides specialty electrical construction services. The Company performs construction services in two segments: Transmission and Distribution (T&D), and Commercial and Industrial (C&I). The Company provides C&I electrical contracting services to general contractors, commercial and industrial facility owners, local governments and developers in the western and northeastern United States and western Canada. The Company’s T&D segment serves the T&D sector of the electric utility industry. The Company provides a range of services on electric transmission and distribution networks and substation facilities, such as design, engineering, procurement, construction and upgrade. The Company’s C&I segment provides services, such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting.