Comparing Primoris Services (PRIM) & Its Rivals

by · The Markets Daily

Primoris Services (NYSE:PRIM – Get Free Report) is one of 188 public companies in the “Construction & Engineering” industry, but how does it weigh in compared to its rivals? We will compare Primoris Services to similar companies based on the strength of its earnings, analyst recommendations, valuation, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Primoris Services and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
Primoris Services$7.57 billion$274.90 million36.98
Primoris Services Competitors$10.73 billion$456.60 million-5,802.31

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Primoris Services and its rivals, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Primoris Services071002.59
Primoris Services Competitors850346573523622.60

Primoris Services presently has a consensus target price of $116.20, suggesting a potential upside of 77.52%. As a group, “Construction & Engineering” companies have a potential upside of 49.23%. Given Primoris Services’ higher possible upside, research analysts plainly believe Primoris Services is more favorable than its rivals.

Dividends

Primoris Services pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Primoris Services pays out 18.1% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 2.4% and pay out 25.4% of their earnings in the form of a dividend. Primoris Services has increased its dividend for 1 consecutive years.

Insider & Institutional Ownership

91.8% of Primoris Services shares are owned by institutional investors. Comparatively, 48.9% of shares of all “Construction & Engineering” companies are owned by institutional investors. 1.1% of Primoris Services shares are owned by insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Primoris Services has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Primoris Services’ rivals have a beta of 1.60, indicating that their average stock price is 60% more volatile than the S&P 500.

Profitability

This table compares Primoris Services and its rivals’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Primoris Services1.36%7.72%2.82%
Primoris Services Competitors-3.99%2.77%3.82%

Summary

Primoris Services rivals beat Primoris Services on 9 of the 15 factors compared.

Primoris Services Company Profile

(Get Free Report)

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.