Comfort Systems USA (FIX) and Quanta Services (PWR) Critical Comparison

Comfort Systems USA (NYSE: FIX) and Quanta Services (NYSE:PWR) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Dividends

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Comfort Systems USA pays an annual dividend of $0.30 per share and has a dividend yield of 0.7%. Quanta Services 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 raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Comfort Systems USA and Quanta Services, 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
Quanta Services 0 1 12 0 2.92

Comfort Systems USA currently has a consensus price target of $63.00, indicating a potential upside of 51.26%. Quanta Services has a consensus price target of $45.67, indicating a potential upside of 31.68%. Given Comfort Systems USA’s higher probable upside, analysts clearly believe Comfort Systems USA is more favorable than Quanta Services.

Insider & Institutional Ownership

95.0% of Comfort Systems USA shares are owned by institutional investors. Comparatively, 86.3% of Quanta Services shares are owned by institutional investors. 3.5% of Comfort Systems USA shares are owned by insiders. Comparatively, 0.8% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Comfort Systems USA and Quanta Services’ 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%
Quanta Services 3.33% 7.75% 4.58%

Risk and Volatility

Comfort Systems USA has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Comfort Systems USA and Quanta Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comfort Systems USA $1.79 billion 0.87 $55.27 million $1.74 23.94
Quanta Services $9.47 billion 0.56 $314.97 million $1.78 19.48

Quanta Services has higher revenue and earnings than Comfort Systems USA. Quanta Services is trading at a lower price-to-earnings ratio than Comfort Systems USA, indicating that it is currently the more affordable of the two stocks.

Summary

Comfort Systems USA beats Quanta Services on 10 of the 17 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.

Quanta Services Company Profile

Quanta Services, Inc. is a provider of specialty contracting services, offering infrastructure solutions primarily to the electric power and oil and gas industries in the United States, Canada and Australia and selected other international markets. The Company operates through two segments: Electric Power Infrastructure Services, which provides network solutions to customers in the electric power industry, and Oil and Gas Infrastructure Services, which provides network solutions to customers involved in the development and transportation of natural gas, oil and other pipeline products. The services it provides include the design, installation, upgrade, repair and maintenance of infrastructure within each of the industries it serves, such as electric power transmission and distribution networks, substation facilities, renewable energy facilities, pipeline transmission and distribution systems and facilities, and infrastructure services for the offshore and inland water energy markets.

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