Arcosa (NYSE:ACA) and Gulf Island Fabrication (NASDAQ:GIFI) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Earnings & Valuation

This table compares Arcosa and Gulf Island Fabrication’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcosa $1.74 billion 1.26 $113.30 million $2.35 19.28
Gulf Island Fabrication $303.31 million 0.16 -$49.39 million N/A N/A

Arcosa has higher revenue and earnings than Gulf Island Fabrication.

Profitability

This table compares Arcosa and Gulf Island Fabrication’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arcosa 6.32% 6.86% 5.11%
Gulf Island Fabrication -13.87% -16.63% -10.38%

Insider & Institutional Ownership

47.3% of Gulf Island Fabrication shares are held by institutional investors. 0.5% of Arcosa shares are held by insiders. Comparatively, 14.1% of Gulf Island Fabrication shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Arcosa and Gulf Island Fabrication, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arcosa 0 1 3 0 2.75
Gulf Island Fabrication 0 0 0 0 N/A

Arcosa presently has a consensus target price of $53.00, suggesting a potential upside of 17.00%. Given Arcosa’s higher probable upside, equities research analysts plainly believe Arcosa is more favorable than Gulf Island Fabrication.

Volatility and Risk

Arcosa has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Gulf Island Fabrication has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Summary

Arcosa beats Gulf Island Fabrication on 9 of the 12 factors compared between the two stocks.

Arcosa Company Profile

Arcosa, Inc. manufactures and sells infrastructure-related products and services for the construction, energy, and transportation markets. It operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment offers lightweight and natural construction aggregates, and trench shields and shoring products that are used in construction landscape, including commercial, industrial, road and bridge, and underground construction. It serves concrete producers; commercial, residential, industrial, and highway contractors; manufacturers of masonry products; state and local governments; and equipment rental dealers. The Energy Equipment Group segment provides structural wind towers for wind turbine producers; steel utility structures for electricity transmission and distribution; and pressurized and non-pressurized storage and distribution containers that store and transport various products, such as propane, anhydrous ammonia, and natural gas liquids. The Transportation Products Group segment offers hopper barges, tank barges, fiberglass covers, hatches, castings, and winches for commercial marine transportation companies and industrial shippers; axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as for other industrial uses; and cast components for use in the industrial and mining sectors. The company is headquartered in Dallas, Texas.

Gulf Island Fabrication Company Profile

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures, modules, and marine vessels in the United States. It operates through in segments: Fabrication, Shipyard, Services, and EPC. The Fabrication segment fabricates modules for petrochemical and industrial facilities, foundations for alternative energy developments, and other steel structures. It also fabricates offshore drilling and production platforms, and other offshore structures for customers in the oil and gas industry, including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms, piles, wellhead protectors, and subsea templates, as well as various production, compressor, and utility modules with pressure vessels. The Shipyard segment fabricates newbuild vessels, such as offshore support and multi-purpose service vessels, research and salvage vessels, tug boats, towboats, barges, drydocks, anchor handling vessels, lift boats, and other marine vessels. It also performs steel repair, blasting, painting, electrical systems repair, and machinery and piping system repairs; and propeller, shaft, and rudder reconditioning services. In addition, this segment performs conversion projects that include lengthening vessels, modifying vessels to permit their use for various activities, and other modifications to vessels. The Services segment provides interconnect piping and related services for offshore platforms and inland structures; contracts services for various on-site construction and maintenance activities to the oil and gas companies; and fabricates packaged skid units and performs various civil and drainage projects, such as pump stations, levee reinforcement, bulkheads, and other work for state and local governments. The EPC segment offers pricing, planning and scheduling for the SeaOne project. The company was founded in 1985 and is headquartered in Houston, Texas.

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