Analyzing Quanta Services (NYSE:PWR) and Kaiser Group (OTCMKTS:KGHI)

Quanta Services (NYSE:PWR) and Kaiser Group (OTCMKTS:KGHI) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

90.5% of Quanta Services shares are held by institutional investors. 1.1% of Quanta Services shares are held by insiders. Comparatively, 13.8% of Kaiser Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Quanta Services and Kaiser Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quanta Services	0	9	13	2	2.71
Kaiser Group	0	0	0	0	0.00

Quanta Services currently has a consensus target price of $353.35, indicating a potential downside of 8.81%. Given Kaiser Group’s higher possible upside, analysts plainly believe Kaiser Group is more favorable than Quanta Services.

Profitability

This table compares Quanta Services and Kaiser Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quanta Services	3.74%	18.06%	7.08%
Kaiser Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Quanta Services and Kaiser Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quanta Services	$24.87 billion	2.31	$904.82 million	$6.20	62.50
Kaiser Group	N/A	N/A	N/A	N/A	N/A

Quanta Services has higher revenue and earnings than Kaiser Group.

Summary

Quanta Services beats Kaiser Group on 8 of the 10 factors compared between the two stocks.

About Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.

About Kaiser Group

Kaiser Group Holdings, Inc., through its subsidiary, Kaiser Aircraft Industries, Inc., provides aircraft maintenance and modification services for government, military, and commercial customers. It also manufactures and assemblies parts and kits. The company was founded in 1969 and is headquartered in Birmingham, Alabama.