Analyzing Southland (NASDAQ:SLND) & EMCOR Group (NYSE:EME)

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

Profitability

This table compares EMCOR Group and Southland’s 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%
Southland	-10.38%	-47.71%	-8.75%

Risk and Volatility

EMCOR Group has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Southland has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

92.6% of EMCOR Group shares are owned by institutional investors. Comparatively, 2.8% of Southland shares are owned by institutional investors. 0.7% of EMCOR Group shares are owned by insiders. Comparatively, 73.4% of Southland shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for EMCOR Group and Southland, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EMCOR Group	0	1	8	1	3.00
Southland	0	1	0	0	2.00

EMCOR Group presently has a consensus target price of $965.86, indicating a potential upside of 28.11%. Given EMCOR Group’s stronger consensus rating and higher possible upside, analysts plainly believe EMCOR Group is more favorable than Southland.

Valuation and Earnings

This table compares EMCOR Group and Southland”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EMCOR Group	$18.60 billion	1.79	$1.27 billion	$32.15	23.45
Southland	$603.01 million	0.06	-$19.25 million	($7.46)	-0.09

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

Summary

EMCOR Group beats Southland on 14 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 Southland

Southland Holdings, Inc. engages in specialty infrastructure construction business in North America and internationally. The company operates through two segments, Civil and Transportation. The Civil segment designs and constructs water pipelines, pump stations, lift stations, water and wastewater treatment plants, concrete and structural steel, outfall, and tunneling. The Transportation segment designs and constructs bridges, roadways, marine, dredging, ship terminals and piers, and specialty structures and facilities, as well as convention centers, sports stadiums, marine facilities, and ferris wheels. Southland Holdings, Inc. was founded in 1900 and is headquartered in Grapevine, Texas.