QualTek Services (NASDAQ:QTEK) vs. MasTec (NYSE:MTZ) Critical Analysis

QualTek Services (NASDAQ:QTEKGet Rating) and MasTec (NYSE:MTZGet Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Valuation & Earnings

This table compares QualTek Services and MasTec’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QualTek Services $612.24 million 0.06 -$110.43 million N/A N/A
MasTec $7.95 billion 0.76 $328.83 million $4.45 17.92

MasTec has higher revenue and earnings than QualTek Services.

Institutional and Insider Ownership

65.5% of QualTek Services shares are owned by institutional investors. Comparatively, 74.2% of MasTec shares are owned by institutional investors. 24.7% of MasTec shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares QualTek Services and MasTec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QualTek Services N/A -921.32% -25.91%
MasTec 4.14% 17.24% 6.37%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for QualTek Services and MasTec, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QualTek Services 0 0 2 0 3.00
MasTec 0 0 8 0 3.00

QualTek Services currently has a consensus target price of $7.00, indicating a potential upside of 168.20%. MasTec has a consensus target price of $118.50, indicating a potential upside of 48.59%. Given QualTek Services’ higher probable upside, research analysts clearly believe QualTek Services is more favorable than MasTec.

Summary

MasTec beats QualTek Services on 9 of the 10 factors compared between the two stocks.

QualTek Services Company Profile (Get Rating)

QualTek Services Inc. provides communications infrastructure services and renewables solutions to telecommunications and utilities industries in North America. The company operates through two segments, Telecom, and Renewables and Recovery Logistics. The Telecom segment performs site acquisition, engineering, project management, installation, testing, last mile installation, and maintenance solutions of communication infrastructure for telecommunication and cable providers, businesses, public venues, government facilities, and residential subscribers. The Renewables and Recovery Logistics segment offers fiber optic construction, maintenance, and repair services; continuity and disaster relief services to telecommunication and utility companies; and business-as-usual services, such as generator storage, and repair and cell maintenance services. The company was founded in 2012 and is headquartered in Blue Bell, Pennsylvania.

MasTec Company Profile (Get Rating)

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other segments. The company builds underground and overhead distribution systems, including trenches, conduits, cell towers, cable, and power lines, which provide wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy; natural gas, product transport; electrical and gas transmission, and distribution systems; heavy industrial plants; compressor and pump stations, and treatment plants; water and sewer infrastructure, including water pipelines; and other civil construction infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation facilities, buried and aerial fiber optic and other cables, as well as home automation and energy management solutions. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include public and private energy providers, pipeline operators, wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

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