Financial Contrast: Técnicas Reunidas (OTCMKTS:TNISF) vs. Energy Services of America (NASDAQ:ESOA)

Técnicas Reunidas (OTCMKTS:TNISF) and Energy Services of America (NASDAQ:ESOA) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Técnicas Reunidas and Energy Services of America, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Técnicas Reunidas	0	0	0	0	0.00
Energy Services of America	0	0	1	0	3.00

Energy Services of America has a consensus target price of $21.00, indicating a potential upside of 108.54%. Given Energy Services of America’s stronger consensus rating and higher possible upside, analysts clearly believe Energy Services of America is more favorable than Técnicas Reunidas.

Earnings and Valuation

This table compares Técnicas Reunidas and Energy Services of America”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Técnicas Reunidas	N/A	N/A	N/A	$2.34	8.12
Energy Services of America	$367.91 million	N/A	N/A	$0.18	55.03

Técnicas Reunidas is trading at a lower price-to-earnings ratio than Energy Services of America, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Técnicas Reunidas and Energy Services of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Técnicas Reunidas	N/A	N/A	N/A
Energy Services of America	N/A	N/A	N/A

Dividends

Técnicas Reunidas pays an annual dividend of $1.10 per share and has a dividend yield of 5.8%. Energy Services of America pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Técnicas Reunidas pays out 47.1% of its earnings in the form of a dividend. Energy Services of America pays out 65.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Técnicas Reunidas is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

30.7% of Técnicas Reunidas shares are owned by institutional investors. Comparatively, 2.1% of Energy Services of America shares are owned by institutional investors. 44.7% of Energy Services of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Energy Services of America beats Técnicas Reunidas on 6 of the 10 factors compared between the two stocks.

About Técnicas Reunidas

Técnicas Reunidas, S.A., an engineering and construction company, designs and manages industrial plant projects worldwide. It operates through Oil and Gas, Power, and Other Industries segments. The Oil and Gas segment offers engineering, procurement, and construction services in oil processing operations, and chemical production and processing operations; services related to the natural gas production and extraction value chain, such as production, processing, storage, and transportation; constructs, revamps, and expands refining plants; designs and builds auxiliary services and other refining units; and designs and constructs monomers, polymers and plastics, chemical, and fertilizer producing and processing plants. The Power segment provides consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated plants with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste plants, and biomass technology plants, as well as plant operation and maintenance services; and supplies turnkey plants. The Other Industries segment undertakes projects in various areas that include airports, industrial facilities, and desalination and water treatment plants, as well as projects for public authorities and other organizations, including management of car parks and sports centers. Técnicas Reunidas, S.A. is also involved in the real estate development, commercial development, and machinery wholesale business; and technical assistance, construction supervision, project management, technical management, and start-up and training activities. The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972. Técnicas Reunidas, S.A. was incorporated in 1960 and is based in Madrid, Spain.

About Energy Services of America

Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.