Analyzing North American Construction Group (NYSE:NOA) & Gulf Island Fabrication (NASDAQ:GIFI)

Gulf Island Fabrication (NASDAQ:GIFI) and North American Construction Group (NYSE:NOA) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Gulf Island Fabrication and North American Construction Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulf Island Fabrication	0	0	0	0	0.00
North American Construction Group	0	1	1	1	3.00

Risk and Volatility

Gulf Island Fabrication has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, North American Construction Group has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gulf Island Fabrication and North American Construction Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulf Island Fabrication	$159.20 million	0.73	$14.74 million	$0.74	9.66
North American Construction Group	$850.88 million	0.55	$32.17 million	$1.01	15.21

North American Construction Group has higher revenue and earnings than Gulf Island Fabrication. Gulf Island Fabrication is trading at a lower price-to-earnings ratio than North American Construction Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

46.4% of Gulf Island Fabrication shares are held by institutional investors. Comparatively, 75.0% of North American Construction Group shares are held by institutional investors. 20.1% of Gulf Island Fabrication shares are held by insiders. Comparatively, 9.7% of North American Construction Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Gulf Island Fabrication and North American Construction Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gulf Island Fabrication	7.87%	13.50%	9.21%
North American Construction Group	3.24%	23.70%	5.64%

Summary

North American Construction Group beats Gulf Island Fabrication on 10 of the 14 factors compared between the two stocks.

About Gulf Island Fabrication

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. It operates through Services, Fabrication, and Shipyard divisions. The company provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, and other specialty services on offshore platforms, inland structures, and industrial facilities; services required to connect production equipment and service modules, and equipment on offshore platforms; project management and commissioning services; hookup services; and civil construction and staffing services to the industrial and energy sectors, as well as undertakes municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. It also fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. In addition, the company fabricates newbuild marine vessels and provides marine repair and maintenance services. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was incorporated in 1985 and is headquartered in The Woodlands, Texas.

About North American Construction Group

North American Construction Group Ltd. provides mining and heavy civil construction services to customers in the resource development and industrial construction sectors in Australia, Canada, and the United States. The company operates Heavy Equipment – Canada, Heavy Equipment – Australia, and Other segments. It also offers mine management services for thermal coal mines; and construction and operations support services in the Canadian oil sands region. In addition, the company provides fully maintained heavy equipment rentals and full service mine operations support at metallurgical and thermal coal mines; heavy equipment rentals to iron ore, gold and lithium producers; and heavy equipment maintenance, component remanufacturing, and full equipment rebuild services to mining companies and other heavy equipment operators, as well as supplies production-critical components to the mining and construction industry. As of December 31, 2023, it operated a heavy equipment fleet of 900 units. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. North American Construction Group Ltd. was incorporated in 1953 and is headquartered in Acheson, Canada.