Contrasting Construction Partners (NASDAQ:ROAD) & MYR Group (NASDAQ:MYRG)

MYR Group (NASDAQ:MYRG) and Construction Partners (NASDAQ:ROAD) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Insider & Institutional Ownership

88.9% of MYR Group shares are owned by institutional investors. Comparatively, 94.8% of Construction Partners shares are owned by institutional investors. 1.9% of MYR Group shares are owned by company insiders. Comparatively, 15.7% of Construction Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MYR Group and Construction Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MYR Group	$3.66 billion	1.22	$118.42 million	$10.54	27.19
Construction Partners	$3.48 billion	1.71	$101.78 million	$2.55	41.05

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

Analyst Ratings

This is a summary of recent recommendations for MYR Group and Construction Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MYR Group	0	4	2	2	2.75
Construction Partners	0	3	4	1	2.75

MYR Group currently has a consensus price target of $451.20, suggesting a potential upside of 57.44%. Construction Partners has a consensus price target of $133.50, suggesting a potential upside of 27.53%. Given MYR Group’s higher probable upside, equities research analysts plainly believe MYR Group is more favorable than Construction Partners.

Profitability

This table compares MYR Group and Construction Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MYR Group	4.13%	24.17%	9.96%
Construction Partners	4.10%	16.06%	4.59%

Risk & Volatility

MYR Group has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Construction Partners has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Summary

MYR Group beats Construction Partners on 9 of the 14 factors compared between the two stocks.

About MYR Group

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, clean energy projects, and electric vehicle charging infrastructure services, as well as emergency restoration services in response to hurricane, wildfire, ice, or other related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of intelligent transportation systems, roadway lighting, and signalization for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers. The company was founded in 1891 and is headquartered in Thornton, Colorado.

About Construction Partners

Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2007 and is headquartered in Dothan, Alabama.