Analyzing Quanta Services (PWR) & The Shaw Group (SHAW)

Quanta Services (NYSE: PWR) and The Shaw Group (NYSE:SHAW) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Earnings & Valuation

This table compares Quanta Services and The Shaw Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quanta Services $7.65 billion 0.79 $198.38 million $1.85 21.12
The Shaw Group N/A N/A N/A $3.25 N/A

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

Profitability

This table compares Quanta Services and The Shaw Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quanta Services 3.18% 8.47% 5.08%
The Shaw Group N/A N/A N/A

Institutional & Insider Ownership

85.8% of Quanta Services shares are owned by institutional investors. 0.8% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quanta Services 0 1 9 0 2.90
The Shaw Group 0 0 0 0 N/A

Quanta Services presently has a consensus target price of $45.33, indicating a potential upside of 16.03%.

Summary

Quanta Services beats The Shaw Group on 7 of the 8 factors compared between the two stocks.

About Quanta Services

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.

About The Shaw Group

The Shaw Group Inc. (Shaw) is a provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to a diverse client base that includes multinational and national oil companies and industrial corporations, regulated utilities, independent and merchant power producers, and government agencies. The Company has developed and acquired intellectual property, including induction pipe bending technology and environmental decontamination technologies. Its segments include Power, Plant Services, Environmental & Infrastructure (E&I), Fabrication & Manufacturing (F&M), Energy & Chemicals (E&C) Segment, Investment in Westinghouse, and Corporate segment. Effective August 31, 2012, the Company completed the divestiture of its Energy & Chemicals business to Technip. On January 4, 2013, TOSHIBA CORP acquired a 20% stake in Westinghouse from Shaw Group Inc.

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