Comfort Systems USA (NYSE: FIX) and Newport Corp (NASDAQ:NEWP) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Comfort Systems USA pays an annual dividend of $0.30 per share and has a dividend yield of 0.7%. Newport Corp does not pay a dividend. Comfort Systems USA pays out 17.4% of its earnings in the form of a dividend. Comfort Systems USA has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Comfort Systems USA and Newport Corp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Comfort Systems USA||$1.63 billion||0.93||$64.89 million||$1.72||23.92|
Comfort Systems USA has higher revenue and earnings than Newport Corp. Comfort Systems USA is trading at a lower price-to-earnings ratio than Newport Corp, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.2% of Comfort Systems USA shares are held by institutional investors. 3.5% of Comfort Systems USA shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Comfort Systems USA and Newport Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comfort Systems USA||3.76%||16.49%||8.14%|
This is a breakdown of current recommendations and price targets for Comfort Systems USA and Newport Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comfort Systems USA||0||4||1||0||2.20|
Comfort Systems USA currently has a consensus target price of $63.00, indicating a potential upside of 53.10%. Given Comfort Systems USA’s higher possible upside, research analysts clearly believe Comfort Systems USA is more favorable than Newport Corp.
Comfort Systems USA beats Newport Corp on 10 of the 12 factors compared between the two stocks.
Comfort Systems USA Company Profile
Comfort Systems USA, Inc. is a provider of mechanical contracting services, which principally includes heating, ventilation and air conditioning (HVAC), plumbing, piping and controls, as well as off-site construction, electrical, monitoring and fire protection. As of December 31, 2016, the Company installed, maintained, repaired and replaced products and systems throughout its 35 operating units in 84 cities and 91 locations throughout the United States. The Company operates primarily in the commercial, industrial and institutional HVAC markets and offers services in the industrial, healthcare, education, office, technology, retail and government facilities. The Company provides a range of construction, renovation, expansion, maintenance, repair and replacement services for mechanical and related systems in commercial, industrial and institutional properties. The Company also provides remote monitoring of temperature, pressure, humidity and air flow for HVAC systems.
Newport Corp Company Profile
Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.
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