Analyzing EMCOR Group (NYSE:EME) & MYR Group (NASDAQ:MYRG)

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

Risk and Volatility

EMCOR Group has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, MYR Group has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for EMCOR Group and MYR Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EMCOR Group	0	2	7	0	2.78
MYR Group	0	3	4	2	2.89

EMCOR Group currently has a consensus target price of $931.86, suggesting a potential upside of 44.02%. MYR Group has a consensus target price of $397.00, suggesting a potential upside of 43.35%. Given EMCOR Group’s higher possible upside, research analysts clearly believe EMCOR Group is more favorable than MYR Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EMCOR Group	$19.84 billion	1.43	$1.27 billion	$34.62	18.69
MYR Group	$4.31 billion	1.00	$118.42 million	$12.31	22.50

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

Institutional and Insider Ownership

92.6% of EMCOR Group shares are owned by institutional investors. Comparatively, 88.9% of MYR Group shares are owned by institutional investors. 0.7% of EMCOR Group shares are owned by insiders. Comparatively, 1.9% of MYR Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares EMCOR Group and MYR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EMCOR Group	7.78%	36.65%	14.50%
MYR Group	4.48%	26.32%	10.89%

Summary

EMCOR Group beats MYR Group on 10 of the 15 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 MYR Group

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, clean energy projects, and electric vehicle charging infrastructure services, as well as emergency restoration services in response to hurricane, wildfire, ice, or other related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of intelligent transportation systems, roadway lighting, and signalization for airports, hospitals, data centers, hotels, stadiums, commercial and industrial facilities, clean energy projects, manufacturing plants, processing facilities, water/waste-water treatment facilities, mining facilities, intelligent transportation systems, roadway lighting, signalization, and electric vehicle charging infrastructure. This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers. The company was founded in 1891 and is headquartered in Thornton, Colorado.