Weir Group (OTCMKTS: WEGRY) and Granite Construction (NYSE:GVA) are both mid-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Weir Group pays an annual dividend of $0.26 per share and has a dividend yield of 1.9%. Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Granite Construction pays out 30.6% of its earnings in the form of a dividend.
Institutional and Insider Ownership
0.1% of Weir Group shares are held by institutional investors. Comparatively, 96.1% of Granite Construction shares are held by institutional investors. 1.3% of Granite Construction shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Weir Group has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Granite Construction has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
This table compares Weir Group and Granite Construction’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Earnings & Valuation
This table compares Weir Group and Granite Construction’s revenue, earnings per share and valuation.
||Earnings Per Share
Weir Group has higher revenue and earnings than Granite Construction.
This is a breakdown of recent ratings for Weir Group and Granite Construction, as provided by MarketBeat.
||Strong Buy Ratings
Granite Construction has a consensus target price of $70.17, indicating a potential upside of 22.91%. Given Granite Construction’s stronger consensus rating and higher probable upside, analysts plainly believe Granite Construction is more favorable than Weir Group.
Granite Construction beats Weir Group on 8 of the 14 factors compared between the two stocks.
About Weir Group
The Weir Group PLC designs, manufactures, and sells highly-engineered products and services worldwide. The company operates in three segments: Minerals, Oil & Gas, and Flow Control. The Minerals segment engineers pumps, valves, cyclones, crushers, high pressure grinding rolls, rubber, and other solutions; and provides slurry handling equipment and associated aftermarket support services for mining, sand and aggregates, and oil sands markets. The Oil & Gas segment provides products and service solutions for upstream, production, transportation, refining, and related industries. The Flow Control segment designs and manufactures valves and pumps, as well as provides specialist support services to power generation, industrial, oil, and gas sectors. The company offers its products under the Warman, SPM, Batley Valve, Allen Steam Turbines, Aspir, Atwood & Morrill, AutoTork, BDK, Begemann, Blakeborough, Cavex, Delta Industrial, Enduron, Floway, Gabbioneta, GEHO, Hazleton, Hopkinsons, Hydrau-Flo, Isogate, Lewis, Linatex, Mathena, Multiflo, Novatech, Roto-Jet, Sarasin-RSBD, Seaboard, SEBIM, Stampede, Tricentric, Trio, Vulco, WEMCO, and WSP brand names. The Weir Group PLC was founded in 1871 and is headquartered in Glasgow, the United Kingdom.
About Granite Construction
Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. The Company operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.
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