Aegion (AEGN) versus Dycom Industries (DY) Financial Contrast

Aegion (NASDAQ: AEGN) and Dycom Industries (NYSE:DY) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk and Volatility

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Aegion has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Dycom Industries has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Profitability

This table compares Aegion and Dycom Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aegion -5.37% 6.32% 3.02%
Dycom Industries 5.08% 18.67% 6.58%

Analyst Ratings

This is a summary of current ratings and price targets for Aegion and Dycom Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aegion 0 5 1 0 2.17
Dycom Industries 0 1 9 0 2.90

Aegion presently has a consensus target price of $26.33, indicating a potential upside of 15.55%. Dycom Industries has a consensus target price of $122.00, indicating a potential upside of 15.54%. Given Aegion’s higher possible upside, analysts plainly believe Aegion is more favorable than Dycom Industries.

Valuation and Earnings

This table compares Aegion and Dycom Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aegion $1.36 billion 0.55 -$69.05 million $1.03 22.13
Dycom Industries $3.07 billion 1.07 $23.66 million N/A N/A

Dycom Industries has higher revenue and earnings than Aegion.

Institutional and Insider Ownership

93.9% of Aegion shares are owned by institutional investors. 3.4% of Aegion shares are owned by insiders. Comparatively, 5.4% of Dycom Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Dycom Industries beats Aegion on 10 of the 13 factors compared between the two stocks.

Aegion Company Profile

Aegion Corporation (Aegion) is engaged in providing infrastructure protection and maintenance. The Company operates through three segments: Infrastructure Solutions, Corrosion Protection and Energy Services. The Company offers service solutions, including rehabilitation of water and wastewater pipelines with Insituform cured-in-place pipe (CIPP) products; fusible polyvinyl chloride products for rehabilitation; fiber reinforced polymer systems for rehabilitation and strengthening; cathodic protection for corrosion engineering control and infrastructure rehabilitation; pipe coatings for corrosion control and prevention; high density polyethylene (HDPE) pipe lining for corrosion control, abrasion protection and pipeline rehabilitation, and construction and maintenance of oil and gas facilities. The Company’s Insituform CIPP Process for the rehabilitation of sewers, pipelines and other conduits utilizes a custom-manufactured tube, or liner, made of synthetic fiber.

Dycom Industries Company Profile

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.

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