Financial Analysis: Primoris Services Corporation (PRIM) vs. Its Peers

Primoris Services Corporation (NASDAQ: PRIM) is one of 48 publicly-traded companies in the “Construction & Engineering” industry, but how does it weigh in compared to its peers? We will compare Primoris Services Corporation to related companies based on the strength of its dividends, profitability, risk, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares Primoris Services Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primoris Services Corporation 2.09% 11.30% 4.90%
Primoris Services Corporation Competitors 1.90% -27.89% 2.21%

Analyst Ratings

This is a summary of recent ratings and price targets for Primoris Services Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primoris Services Corporation 0 5 3 0 2.38
Primoris Services Corporation Competitors 158 907 1564 18 2.54

Primoris Services Corporation currently has a consensus price target of $28.00, suggesting a potential downside of 1.41%. As a group, “Construction & Engineering” companies have a potential upside of 22.31%. Given Primoris Services Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Primoris Services Corporation has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Primoris Services Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Primoris Services Corporation $2.30 billion $162.46 million 30.21
Primoris Services Corporation Competitors $3.12 billion $137.70 million 19.03

Primoris Services Corporation’s peers have higher revenue, but lower earnings than Primoris Services Corporation. Primoris Services Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

69.7% of Primoris Services Corporation shares are held by institutional investors. Comparatively, 79.0% of shares of all “Construction & Engineering” companies are held by institutional investors. 24.0% of Primoris Services Corporation shares are held by company insiders. Comparatively, 11.1% of shares of all “Construction & Engineering” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Primoris Services Corporation has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Primoris Services Corporation’s peers have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.

Dividends

Primoris Services Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. Primoris Services Corporation pays out 23.4% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 1.5% and pay out 119.3% of their earnings in the form of a dividend.

Summary

Primoris Services Corporation beats its peers on 8 of the 15 factors compared.

About Primoris Services Corporation

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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