Dycom Industries (DY) and MYR Group (MYRG) Critical Analysis

Dycom Industries (NYSE: DY) and MYR Group (NASDAQ:MYRG) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

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Dycom Industries has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, MYR Group has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

89.4% of MYR Group shares are held by institutional investors. 5.4% of Dycom Industries shares are held by company insiders. Comparatively, 4.9% of MYR Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Dycom Industries 5.08% 18.67% 6.58%
MYR Group 1.51% 4.90% 2.28%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Dycom Industries and MYR Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dycom Industries 0 1 9 0 2.90
MYR Group 0 4 2 0 2.33

Dycom Industries currently has a consensus target price of $122.00, indicating a potential upside of 15.54%. MYR Group has a consensus target price of $34.80, indicating a potential upside of 13.80%. Given Dycom Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Dycom Industries is more favorable than MYR Group.

Earnings and Valuation

This table compares Dycom Industries and MYR Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dycom Industries $3.07 billion 1.07 $23.66 million N/A N/A
MYR Group $1.40 billion 0.36 $21.15 million $0.81 37.75

Dycom Industries has higher revenue and earnings than MYR Group.

Summary

Dycom Industries beats MYR Group on 11 of the 13 factors compared between the two stocks.

About Dycom Industries

Dycom Industries, Inc. provides specialty contracting services in the United States and Canada. The company offers various specialty contracting services, including program management, engineering, construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. It also provides tower construction, lines and antenna installation, and foundation and equipment pad construction for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable television system operators. In addition, the company offers construction and maintenance services for electric and gas utilities, and other customers; and underground facility locating services, such as locating telephone, cable television, power, water, sewer, and gas lines for various utility companies, including telecommunication providers. Dycom Industries, Inc. was founded in 1969 and is based in Palm Beach Gardens, Florida.

About MYR Group

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility and the renewable energy industries. Its services include construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems; and emergency restoration services in response to hurricane, ice, or other storm related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides services, such as design, installation, maintenance, and repair of commercial and industrial wiring; and installation of traffic networks, bridge, roadway, and tunnel lighting. This segment offers its services for airports, hospitals, data centers, hotels, stadiums, convention centers, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities, and transportation control and management systems. It serves general contractors, commercial and industrial facility owners, local governments, and developers. MYR Group Inc. was founded in 1891 and is headquartered in Rolling Meadows, Illinois.

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