Financial Analysis: QualTek Services (NASDAQ:QTEK) versus Primoris Services (NASDAQ:PRIM)

QualTek Services (NASDAQ:QTEKGet Rating) and Primoris Services (NASDAQ:PRIMGet Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Valuation & Earnings

This table compares QualTek Services and Primoris Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QualTek Services $612.24 million 0.19 -$4.06 million N/A N/A
Primoris Services $3.50 billion 0.35 $115.61 million $1.99 11.48

Primoris Services has higher revenue and earnings than QualTek Services.

Analyst Ratings

This is a summary of recent recommendations for QualTek Services and Primoris Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QualTek Services 0 0 2 0 3.00
Primoris Services 1 0 3 0 2.50

QualTek Services currently has a consensus price target of $7.00, indicating a potential upside of 211.11%. Primoris Services has a consensus price target of $31.67, indicating a potential upside of 38.65%. Given QualTek Services’ stronger consensus rating and higher probable upside, analysts clearly believe QualTek Services is more favorable than Primoris Services.

Profitability

This table compares QualTek Services and Primoris Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QualTek Services N/A -1,753.67% -25.94%
Primoris Services 3.12% 12.39% 4.71%

Insider & Institutional Ownership

88.4% of Primoris Services shares are held by institutional investors. 1.4% of Primoris Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Primoris Services beats QualTek Services on 9 of the 11 factors compared between the two stocks.

QualTek Services Company Profile (Get Rating)

QualTek Services Inc. provides communications infrastructure services and renewables solutions to telecommunications and utilities industries in North America. The company operates through two segments, Telecom, and Renewables and Recovery Logistics. The Telecom segment performs site acquisition, engineering, project management, installation, testing, last mile installation, and maintenance solutions of communication infrastructure for telecommunication and cable providers, businesses, public venues, government facilities, and residential subscribers. The Renewables and Recovery Logistics segment offers fiber optic construction, maintenance, and repair services; continuity and disaster relief services to telecommunication and utility companies; and business-as-usual services, such as generator storage, and repair and cell maintenance services. The company was founded in 2012 and is headquartered in Blue Bell, Pennsylvania.

Primoris Services Company Profile (Get Rating)

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.

Receive News & Ratings for QualTek Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for QualTek Services and related companies with MarketBeat.com's FREE daily email newsletter.