Contrasting MasTec (NYSE:MTZ) and Limbach (NASDAQ:LMB)

MasTec (NYSE:MTZ) and Limbach (NASDAQ:LMB) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares MasTec and Limbach”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MasTec	$17.29 billion	0.84	$399.04 million	$6.12	29.52
Limbach	$729.65 million	0.91	$39.06 million	$2.56	22.14

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

Volatility and Risk

MasTec has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Limbach has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MasTec and Limbach, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MasTec	0	2	20	0	2.91
Limbach	1	1	2	1	2.60

MasTec presently has a consensus target price of $345.60, indicating a potential upside of 91.31%. Limbach has a consensus target price of $70.25, indicating a potential upside of 23.94%. Given MasTec’s stronger consensus rating and higher probable upside, equities analysts plainly believe MasTec is more favorable than Limbach.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MasTec	2.80%	17.89%	5.74%
Limbach	4.23%	24.40%	11.29%

Institutional and Insider Ownership

78.1% of MasTec shares are owned by institutional investors. Comparatively, 55.8% of Limbach shares are owned by institutional investors. 21.4% of MasTec shares are owned by company insiders. Comparatively, 7.0% of Limbach shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

MasTec beats Limbach on 10 of the 15 factors compared between the two stocks.

About MasTec

MasTec, Inc. is an infrastructure construction and engineering company that builds and maintains systems used to deliver energy, communications and other essential services. Its work includes planning, installation, upgrading and maintenance of infrastructure for customers across a range of industries. The company’s activities include communications networks such as fiber and wireless systems; electric power transmission and distribution; clean-energy and other infrastructure projects; and pipelines and related facilities.

About Limbach

Limbach Group, Inc. provides building systems and related services across the United States. Its work includes the design, installation, maintenance and repair of heating, ventilation and air conditioning (HVAC), plumbing, electrical and building automation systems. The company serves building owners and operators in sectors that include healthcare, education, government, commercial real estate and industrial facilities. Its services range from system upgrades and renovations to ongoing facility maintenance and energy-related improvements.