APi Group (NYSE:APG) versus MasTec (NYSE:MTZ) Critical Contrast

MasTec (NYSE:MTZ) and APi Group (NYSE:APG) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

78.1% of MasTec shares are owned by institutional investors. Comparatively, 86.6% of APi Group shares are owned by institutional investors. 21.4% of MasTec shares are owned by company insiders. Comparatively, 18.7% of APi Group shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MasTec	3.07%	18.08%	5.97%
APi Group	3.99%	37.59%	14.07%

Volatility & Risk

MasTec has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, APi Group has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for MasTec and APi Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MasTec	0	1	19	1	3.00
APi Group	0	2	6	1	2.89

MasTec presently has a consensus price target of $431.42, suggesting a potential upside of 58.68%. APi Group has a consensus price target of $52.57, suggesting a potential upside of 26.62%. Given MasTec’s stronger consensus rating and higher possible upside, equities analysts clearly believe MasTec is more favorable than APi Group.

Earnings & Valuation

This table compares MasTec and APi Group”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	1.53	$399.04 million	$6.27	43.36
APi Group	$7.91 billion	2.27	$302.00 million	($0.67)	-61.97

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

Summary

MasTec beats APi Group on 9 of the 14 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 APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.