Comparing Primoris Services (PRIM) & Aegion (AEGN)
Aegion (NASDAQ: AEGN) and Primoris Services (NASDAQ:PRIM) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Institutional and Insider Ownership
93.0% of Aegion shares are owned by institutional investors. Comparatively, 70.4% of Primoris Services shares are owned by institutional investors. 3.6% of Aegion shares are owned by company insiders. Comparatively, 24.0% of Primoris Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Aegion and Primoris Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Aegion and Primoris Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aegion currently has a consensus target price of $25.50, suggesting a potential downside of 7.71%. Primoris Services has a consensus target price of $31.00, suggesting a potential upside of 10.75%. Given Primoris Services’ stronger consensus rating and higher probable upside, analysts plainly believe Primoris Services is more favorable than Aegion.
Primoris Services pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. Aegion does not pay a dividend. Primoris Services pays out 17.7% of its earnings in the form of a dividend.
Risk and Volatility
Aegion has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Primoris Services has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Earnings & Valuation
This table compares Aegion and Primoris Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aegion||$1.22 billion||0.74||$29.48 million||($1.21)||-22.83|
|Primoris Services||$2.00 billion||0.72||$26.72 million||$1.24||22.57|
Aegion has higher earnings, but lower revenue than Primoris Services. Aegion is trading at a lower price-to-earnings ratio than Primoris Services, indicating that it is currently the more affordable of the two stocks.
Primoris Services beats Aegion on 10 of the 15 factors compared between the two stocks.
Aegion Corporation (Aegion) is engaged in providing infrastructure protection and maintenance. The Company operates through three segments: Infrastructure Solutions, Corrosion Protection and Energy Services. The Company offers service solutions, including rehabilitation of water and wastewater pipelines with Insituform cured-in-place pipe (CIPP) products; fusible polyvinyl chloride products for rehabilitation; fiber reinforced polymer systems for rehabilitation and strengthening; cathodic protection for corrosion engineering control and infrastructure rehabilitation; pipe coatings for corrosion control and prevention; high density polyethylene (HDPE) pipe lining for corrosion control, abrasion protection and pipeline rehabilitation, and construction and maintenance of oil and gas facilities. The Company’s Insituform CIPP Process for the rehabilitation of sewers, pipelines and other conduits utilizes a custom-manufactured tube, or liner, made of synthetic fiber.
About Primoris Services
Primoris Services Corporation is a holding company. The Company holds various subsidiaries, through which it operates as a specialty contractor and infrastructure company. The Company provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to public utilities, petrochemical companies, energy companies, municipalities, state departments of transportation and other customers. It operates in three segments: the West Construction Services segment (West segment), the East Construction Services segment (East segment) and the Energy segment. The Company installs, replaces, repairs and rehabilitates natural gas, refined product, water and wastewater pipeline systems; large diameter gas and liquid pipeline facilities, and heavy civil projects, earthwork and site development.
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