Head to Head Analysis: Comfort Systems USA (NYSE:FIX) vs. MasTec (NYSE:MTZ)

Comfort Systems USA (NYSE:FIX) and MasTec (NYSE:MTZ) are both large-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Comfort Systems USA and MasTec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comfort Systems USA	12.77%	53.55%	20.75%
MasTec	3.07%	18.08%	5.97%

Volatility and Risk

Comfort Systems USA has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, MasTec has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Comfort Systems USA and MasTec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comfort Systems USA	0	1	9	1	3.00
MasTec	0	2	19	0	2.90

Comfort Systems USA currently has a consensus price target of $2,082.86, indicating a potential upside of 30.47%. MasTec has a consensus price target of $427.32, indicating a potential upside of 81.15%. Given MasTec’s higher possible upside, analysts clearly believe MasTec is more favorable than Comfort Systems USA.

Institutional & Insider Ownership

96.5% of Comfort Systems USA shares are held by institutional investors. Comparatively, 78.1% of MasTec shares are held by institutional investors. 1.2% of Comfort Systems USA shares are held by insiders. Comparatively, 21.4% of MasTec shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Comfort Systems USA and MasTec”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comfort Systems USA	$11.23 billion	5.00	$1.02 billion	$40.66	39.26
MasTec	$14.30 billion	1.32	$399.04 million	$6.27	37.62

Comfort Systems USA has higher earnings, but lower revenue than MasTec. MasTec is trading at a lower price-to-earnings ratio than Comfort Systems USA, indicating that it is currently the more affordable of the two stocks.

Summary

Comfort Systems USA beats MasTec on 10 of the 15 factors compared between the two stocks.

About Comfort Systems USA

Comfort Systems USA, Inc., together with its subsidiaries, provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It operates through two segments, Mechanical and Electrical. The company offers heating, ventilation, and air conditioning systems, as well as plumbing, electrical, piping and controls, off-site construction, monitoring, and fire protection. It also engages in the design, engineering, integration, installation, and start-up of mechanical, electrical, and plumbing (MEP) and related systems in new buildings; and renovation, expansion, maintenance, monitoring, repair, and replacement of MEP systems in existing buildings. In addition, the company provides remote monitoring of power usage, temperature, pressure, humidity and air flow for MEP and other building systems. It serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional MEP markets. Comfort Systems USA, Inc. was founded in 1917 and is headquartered in Houston, Texas.

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.