Critical Analysis: Aegion Corp (AEGN) & Quanta Services (PWR)

Aegion Corp (NASDAQ: AEGN) and Quanta Services (NYSE:PWR) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Aegion Corp and Quanta Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aegion Corp 0 5 2 0 2.29
Quanta Services 0 1 9 0 2.90

Aegion Corp presently has a consensus price target of $25.50, indicating a potential downside of 5.63%. Quanta Services has a consensus price target of $45.11, indicating a potential upside of 23.69%. Given Quanta Services’ stronger consensus rating and higher probable upside, analysts plainly believe Quanta Services is more favorable than Aegion Corp.

Volatility and Risk

Aegion Corp has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Aegion Corp and Quanta Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aegion Corp -3.03% 7.62% 3.68%
Quanta Services 3.18% 8.47% 5.08%

Valuation and Earnings

This table compares Aegion Corp and Quanta Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Aegion Corp $1.22 billion 0.72 $29.48 million ($1.21) -22.33
Quanta Services $7.65 billion 0.74 $198.38 million $1.85 19.71

Quanta Services has higher revenue and earnings than Aegion Corp. Aegion Corp is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

91.2% of Aegion Corp shares are held by institutional investors. Comparatively, 85.4% of Quanta Services shares are held by institutional investors. 3.6% of Aegion Corp shares are held by company insiders. Comparatively, 0.8% of Quanta Services shares are held 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.

Summary

Quanta Services beats Aegion Corp on 10 of the 14 factors compared between the two stocks.

Aegion Corp Company Profile

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.

Quanta Services Company Profile

Quanta Services, Inc. is a provider of specialty contracting services, offering infrastructure solutions primarily to the electric power and oil and gas industries in the United States, Canada and Australia and selected other international markets. The Company operates through two segments: Electric Power Infrastructure Services, which provides network solutions to customers in the electric power industry, and Oil and Gas Infrastructure Services, which provides network solutions to customers involved in the development and transportation of natural gas, oil and other pipeline products. The services it provides include the design, installation, upgrade, repair and maintenance of infrastructure within each of the industries it serves, such as electric power transmission and distribution networks, substation facilities, renewable energy facilities, pipeline transmission and distribution systems and facilities, and infrastructure services for the offshore and inland water energy markets.

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