Critical Contrast: Grana y Montero (GRAM) versus IES (IESC)

Grana y Montero (NYSE: GRAM) and IES (NASDAQ:IESC) are both small-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation and Earnings

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This table compares Grana y Montero and IES’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grana y Montero $1.93 billion 0.21 -$40.71 million N/A N/A
IES $810.70 million 0.43 $13.42 million N/A N/A

IES has lower revenue, but higher earnings than Grana y Montero.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Grana y Montero and IES, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grana y Montero 0 0 0 0 N/A
IES 0 0 0 0 N/A

Risk & Volatility

Grana y Montero has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, IES has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Institutional & Insider Ownership

14.6% of Grana y Montero shares are owned by institutional investors. Comparatively, 78.4% of IES shares are owned by institutional investors. 27.4% of Grana y Montero shares are owned by company insiders. Comparatively, 60.0% of IES shares are owned 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.

Profitability

This table compares Grana y Montero and IES’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grana y Montero -2.28% -4.61% -1.55%
IES -2.46% 5.86% 3.26%

Summary

IES beats Grana y Montero on 7 of the 9 factors compared between the two stocks.

Grana y Montero Company Profile

Graña y Montero S.A.A., together with its subsidiaries, provides engineering and construction, infrastructure, real estate, and technical services in Latin America. The company engages in the civil construction, management, and implementation of housing development projects; mining contracting activities, such as mining, drilling, demolition, and other activity related to construction and electro mechanics; and architectural design and installation activities. It also provides electromechanical assemblies and services to energy, oil, gas, and mining sectors; advisory and consultancy services in engineering; and supplies equipment and material to design, build, assemble, operate, and maintain various mechanical engineering, instrumentation, and civil works. In addition, the company offers concessions for constructing, operating, and maintaining the supply system of compressed natural gas in certain provinces of Peru; Section 1 of the Southern Inter-oceanic road; Ancón – Huacho – Pativilca section of the Panamericana Norte road; Buenos Aires – Canchaque road; and Via Expresa – Paseo de la República in Lima. Further, it provides concession of services for treating and selling oil, natural gas, and by-products, as well as for storing and dispatching fuel extracted from demonstrated feasible fields; operates gas processing plant of Pisco ? Camisea; and develops and manages real estate projects. Additionally, the company offers information technology services; and electric and technological services for the power industry, as well as installs and maintains network and equipment for telecommunications. Graña y Montero S.A.A. was founded in 1933 and is based in Lima, Peru.

IES Company Profile

IES Holdings, Inc. engages in communications, commercial and industrial, infrastructure solutions, and residential businesses in the United States. The company's Commercial & Industrial segment provides electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company's Communications segment provides network infrastructure services for data centers and other mission critical environments. This segment designs, installs, and maintains network infrastructure for financial, medical, hospitality, government, high-tech manufacturing, educational, and information technology industries; designs and installs audio/visual, telephone, fire, wireless access, and intrusion alarm systems; and designs/builds, services, and maintains data network systems. Its Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures customer commercial and industrial generator enclosures; manufactures, remanufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. Its Residential segment offers electrical installation services to single-family housing and multi-family apartment complexes; and cable television installation services to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. The company was founded in 1997 and is headquartered in Houston, Texas.

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