Frontdoor (NASDAQ:FTDR) & Everus Construction Group (NYSE:ECG) Critical Contrast

Everus Construction Group (NYSE:ECG) and Frontdoor (NASDAQ:FTDR) are both mid-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares Everus Construction Group and Frontdoor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everus Construction Group	$3.49 billion	1.35	$143.42 million	$3.53	26.23
Frontdoor	$1.84 billion	2.34	$235.00 million	$3.51	17.03

Frontdoor has lower revenue, but higher earnings than Everus Construction Group. Frontdoor is trading at a lower price-to-earnings ratio than Everus Construction Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Everus Construction Group and Frontdoor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everus Construction Group	0	3	2	0	2.40
Frontdoor	1	3	2	0	2.17

Everus Construction Group currently has a consensus target price of $100.33, suggesting a potential upside of 8.35%. Frontdoor has a consensus target price of $59.75, suggesting a potential downside of 0.05%. Given Everus Construction Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Everus Construction Group is more favorable than Frontdoor.

Risk and Volatility

Everus Construction Group has a beta of 3.84, suggesting that its stock price is 284% more volatile than the S&P 500. Comparatively, Frontdoor has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Profitability

This table compares Everus Construction Group and Frontdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everus Construction Group	5.18%	36.74%	12.59%
Frontdoor	12.87%	122.74%	14.33%

Summary

Everus Construction Group beats Frontdoor on 6 of the 11 factors compared between the two stocks.

About Everus Construction Group

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.