Reviewing Pike (PIKE) & MYR Group (MYRG)

Pike (NYSE: PIKE) and MYR Group (NASDAQ:MYRG) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares Pike and MYR Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pike N/A N/A N/A
MYR Group 1.12% 5.76% 2.66%

Analyst Ratings

This is a breakdown of current ratings for Pike and MYR Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pike 0 0 0 0 N/A
MYR Group 0 4 2 0 2.33

MYR Group has a consensus price target of $32.40, suggesting a potential downside of 8.37%. Given MYR Group’s higher possible upside, analysts clearly believe MYR Group is more favorable than Pike.

Institutional & Insider Ownership

87.2% of MYR Group shares are held by institutional investors. 5.0% of MYR Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Pike has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, MYR Group has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Valuation and Earnings

This table compares Pike and MYR Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pike N/A N/A N/A $0.32 37.53
MYR Group $1.14 billion 0.51 $21.43 million $0.93 38.02

MYR Group has higher revenue and earnings than Pike. Pike is trading at a lower price-to-earnings ratio than MYR Group, indicating that it is currently the more affordable of the two stocks.

Summary

MYR Group beats Pike on 9 of the 10 factors compared between the two stocks.

About Pike

Pike Corporation is a provider of construction and engineering services for investor-owned, municipal and co-operative electric utilities in the United States. The Company’s suite of energy and communication solutions includes facilities planning and siting, permitting, engineering, design, installation, maintenance and repair of power delivery systems, including utility-grade solar construction projects and storm-related services. The Company operates in two segments: construction and engineering. On January 1, 2014, Synergetic Design Holdings, Inc. merged with and into Pike Enterprises, Inc., a wholly owned subsidiary of the Company, and UC Synergetic, Inc. (UCS) merged with and into Pike Energy Solutions, LLC (PES), the surviving entity of which was named UC Synergetic, LLC.

About MYR Group

MYR Group Inc. is a holding company. The Company, through its subsidiaries, provides specialty electrical construction services. The Company performs construction services in two segments: Transmission and Distribution (T&D), and Commercial and Industrial (C&I). The Company provides C&I electrical contracting services to general contractors, commercial and industrial facility owners, local governments and developers in the western and northeastern United States and western Canada. The Company’s T&D segment serves the T&D sector of the electric utility industry. The Company provides a range of services on electric transmission and distribution networks and substation facilities, such as design, engineering, procurement, construction and upgrade. The Company’s C&I segment provides services, such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting.

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