Analyzing Dycom Industries (NYSE:DY) & EMCOR Group (NYSE:EME)

EMCOR Group (NYSE:EME) and Dycom Industries (NYSE:DY) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

92.6% of EMCOR Group shares are owned by institutional investors. Comparatively, 98.3% of Dycom Industries shares are owned by institutional investors. 0.7% of EMCOR Group shares are owned by insiders. Comparatively, 1.2% of Dycom Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

EMCOR Group has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Dycom Industries has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for EMCOR Group and Dycom Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EMCOR Group	0	2	7	0	2.78
Dycom Industries	0	3	10	0	2.77

EMCOR Group presently has a consensus price target of $951.86, indicating a potential upside of 39.94%. Dycom Industries has a consensus price target of $502.92, indicating a potential upside of 127.90%. Given Dycom Industries’ higher probable upside, analysts plainly believe Dycom Industries is more favorable than EMCOR Group.

Profitability

This table compares EMCOR Group and Dycom Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EMCOR Group	7.74%	35.49%	14.12%
Dycom Industries	4.79%	25.30%	8.39%

Earnings & Valuation

This table compares EMCOR Group and Dycom Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EMCOR Group	$16.99 billion	1.77	$1.27 billion	$34.62	19.65
Dycom Industries	$5.55 billion	1.20	$281.19 million	$10.99	20.08

EMCOR Group has higher revenue and earnings than Dycom Industries. EMCOR Group is trading at a lower price-to-earnings ratio than Dycom Industries, indicating that it is currently the more affordable of the two stocks.

Summary

EMCOR Group beats Dycom Industries on 9 of the 14 factors compared between the two stocks.

About EMCOR Group

EMCOR Group, Inc. provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that covers commercial and government site-based operations and maintenance; facility management, maintenance, and services; energy efficiency retrofit services; military base operations support services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; modification and retrofit projects; and other building services, including reception, security, and catering services. In addition, it offers refinery turnaround planning and engineering; welding; overhaul and maintenance; instrumentation and electrical; and renewable energy services. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.

About Dycom Industries

Dycom Industries, Inc. provides specialty contracting services to the telecommunications infrastructure and utility industries in the United States. The company offers engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems; wireless networks in connection with the deployment of macro cell and new small cell sites; and program and project management and inspection personnel. It also provides construction, maintenance, and installation services for telephone companies and cable multiple system operators, such as placement and splicing of copper, fiber, and coaxial cables; tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; underground facility locating services comprising locating telephone, cable television, power, water, sewer, and gas lines; installation and maintenance of customer premise equipment, including digital video recorders, set top boxes, and modems for cable system operators; and construction and maintenance services for electric and gas utilities, and other customers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.