Comfort Systems USA (FIX) versus IES (IESC) Financial Analysis

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

Earnings and Valuation

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This table compares Comfort Systems USA and IES’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comfort Systems USA $1.79 billion 0.85 $55.27 million $1.74 23.36
IES $810.70 million 0.44 $13.42 million N/A N/A

Comfort Systems USA has higher revenue and earnings than IES.

Profitability

This table compares Comfort Systems USA and IES’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comfort Systems USA 3.09% 16.10% 7.74%
IES -2.46% 5.86% 3.26%

Insider and Institutional Ownership

95.1% of Comfort Systems USA shares are held by institutional investors. Comparatively, 78.4% of IES shares are held by institutional investors. 3.5% of Comfort Systems USA shares are held by company insiders. Comparatively, 60.0% of IES shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Comfort Systems USA has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, IES has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Dividends

Comfort Systems USA pays an annual dividend of $0.30 per share and has a dividend yield of 0.7%. IES does not pay a dividend. Comfort Systems USA pays out 17.2% of its earnings in the form of a dividend. Comfort Systems USA has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current ratings for Comfort Systems USA and IES, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comfort Systems USA 0 4 0 0 2.00
IES 0 0 0 0 N/A

Comfort Systems USA presently has a consensus price target of $63.00, indicating a potential upside of 54.98%. Given Comfort Systems USA’s higher possible upside, equities analysts clearly believe Comfort Systems USA is more favorable than IES.

Summary

Comfort Systems USA beats IES on 11 of the 14 factors compared between the two stocks.

Comfort Systems USA Company Profile

Comfort Systems USA, Inc. provides mechanical installation, renovation, maintenance, repair, and replacement services for the mechanical services industry in the United States. It is involved in the design, engineering, integration, installation, and start-up of mechanical and related systems; and maintenance, repair, replacement, renovation, expansion, reconfiguration, and monitoring of mechanical systems, including heating, ventilation, and air conditioning (HVAC) systems, as well as industrial process piping. The company provides its services for office buildings, retail centers, apartment complexes, and manufacturing plants; and healthcare, education, and government facilities. It serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional HVAC markets. Comfort Systems USA, Inc. was founded in 1917 and is headquartered in Houston, Texas.

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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