Dycom Industries (DY) & The Competition Critical Analysis

Dycom Industries (NYSE:DY) is one of 188 publicly-traded companies in the “Construction & Engineering” industry, but how does it weigh in compared to its competitors? We will compare Dycom Industries to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Dycom Industries and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dycom Industries	0	3	10	0	2.77
Dycom Industries Competitors	854	3473	7386	365	2.60

Dycom Industries currently has a consensus target price of $502.92, indicating a potential upside of 127.20%. As a group, “Construction & Engineering” companies have a potential upside of 42.11%. Given Dycom Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Dycom Industries is more favorable than its competitors.

Earnings and Valuation

This table compares Dycom Industries and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dycom Industries	$5.55 billion	$281.19 million	20.14
Dycom Industries Competitors	$10.73 billion	$456.60 million	-5,814.44

Dycom Industries’ competitors have higher revenue and earnings than Dycom Industries. Dycom Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Dycom Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dycom Industries	4.79%	25.30%	8.39%
Dycom Industries Competitors	-3.88%	2.99%	3.90%

Institutional & Insider Ownership

98.3% of Dycom Industries shares are owned by institutional investors. Comparatively, 49.7% of shares of all “Construction & Engineering” companies are owned by institutional investors. 1.2% of Dycom Industries shares are owned by company insiders. Comparatively, 20.6% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Dycom Industries has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Dycom Industries’ competitors have a beta of 1.60, suggesting that their average share price is 60% more volatile than the S&P 500.

Summary

Dycom Industries beats its competitors on 8 of the 13 factors compared.

Dycom Industries Company Profile

Dycom Industries, Inc. is a specialty contracting company that builds and maintains communications infrastructure. Its customers include telecommunications providers, cable operators and utilities, primarily in the United States. The company provides engineering, design, construction, installation and maintenance services for broadband networks. Its work includes fiber-optic and other wireline systems, wireless infrastructure, and aerial and underground network construction. Founded in 1969, Dycom supports customers as they expand, upgrade and maintain their communications networks.