Comparing Dycom Industries (DY) and Preformed Line Products (PLPC)

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

Institutional and Insider Ownership

45.0% of Preformed Line Products shares are held by institutional investors. 5.4% of Dycom Industries shares are held by insiders. Comparatively, 36.7% of Preformed Line Products shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Dycom Industries and Preformed Line Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dycom Industries 0 1 9 0 2.90
Preformed Line Products 0 0 0 0 N/A

Dycom Industries currently has a consensus price target of $115.40, indicating a potential upside of 18.52%. Given Dycom Industries’ higher possible upside, analysts clearly believe Dycom Industries is more favorable than Preformed Line Products.

Earnings and Valuation

This table compares Dycom Industries and Preformed Line Products’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dycom Industries $3.07 billion 0.99 $23.66 million N/A N/A
Preformed Line Products $378.21 million 1.03 $12.65 million N/A N/A

Dycom Industries has higher revenue and earnings than Preformed Line Products.

Profitability

This table compares Dycom Industries and Preformed Line Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dycom Industries 4.44% 14.59% 5.46%
Preformed Line Products 4.25% 6.89% 4.60%

Dividends

Preformed Line Products pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Dycom Industries does not pay a dividend.

Risk & Volatility

Dycom Industries has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Preformed Line Products has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Summary

Dycom Industries beats Preformed Line Products on 9 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 Preformed Line Products

Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems used in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operator, information, and other industries. The company offers formed wire and related hardware products to support, protect, terminate, and secure power conductor and communication cables, as well as to control cable dynamics; and hardware products to support and protect transmission conductors, spacers, spacer-dampers, stockbridge dampers, corona suppression devices, and various compression fittings for dead-end applications. It also provides protective closures, including splice cases to protect fixed line communication networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and plastic products comprising guy markers, tree guards, fiber optic cable markers, and pedestal markers to identify power conductors, communication cables, and guy wires. In addition, the company offers data communication cabinets, hardware assemblies, pole line hardware, resale products, underground connectors, solar hardware systems, and urethane products for use by energy, renewable energy, communications, cable, and special industries for various applications; and solar hardware systems and mounting hardware for various solar power applications, as well as fiber optic and copper splice closures. It serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the United States, the Americas, Europe, the Middle East, Africa, and Asia-Pacific. The company markets its products through a direct sales force, as well as through manufacturing representatives. Preformed Line Products Company was founded in 1947 and is headquartered in Cleveland, Ohio.

Receive News & Ratings for Dycom Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dycom Industries and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply