Badger Infrastructure Solutions (OTCMKTS:BADFF) versus Larsen & Toubro (OTCMKTS:LTOUF) Critical Review

Badger Infrastructure Solutions (OTCMKTS:BADFF) and Larsen & Toubro (OTCMKTS:LTOUF) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Dividends

Badger Infrastructure Solutions pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. Larsen & Toubro pays an annual dividend of $13.09 per share and has a dividend yield of 36.2%. Badger Infrastructure Solutions pays out 30.5% of its earnings in the form of a dividend. Larsen & Toubro pays out 22.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Larsen & Toubro is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Badger Infrastructure Solutions and Larsen & Toubro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Badger Infrastructure Solutions	N/A	N/A	N/A
Larsen & Toubro	N/A	N/A	N/A

Valuation & Earnings

This table compares Badger Infrastructure Solutions and Larsen & Toubro’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Badger Infrastructure Solutions	N/A	N/A	N/A	$1.28	20.13
Larsen & Toubro	N/A	N/A	N/A	$58.73	0.62

Larsen & Toubro is trading at a lower price-to-earnings ratio than Badger Infrastructure Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Badger Infrastructure Solutions and Larsen & Toubro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Badger Infrastructure Solutions	0	1	2	0	2.67
Larsen & Toubro	0	0	1	0	3.00

Badger Infrastructure Solutions presently has a consensus price target of $37.75, suggesting a potential upside of 46.89%. Given Badger Infrastructure Solutions’ higher probable upside, equities analysts clearly believe Badger Infrastructure Solutions is more favorable than Larsen & Toubro.

Insider & Institutional Ownership

47.1% of Badger Infrastructure Solutions shares are owned by institutional investors. Comparatively, 1.1% of Larsen & Toubro shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About Badger Infrastructure Solutions

Badger Infrastructure Solutions Ltd. provides non-destructive excavating and related services in Canada and the United States. Its Badger Hydrovac technology uses a pressurized water stream to liquefy the soil cover, which is then removed with a vacuum system and deposited into a storage tank. The company offers daylighting services for visual confirmation of buried lines, directional drilling test holes, sacrificial anode installation, pipeline and utility crossings, and subsurface utility engineering test holes applications; and debris removal services for frac tank clean-outs, road and box culvert clean-outs, pipe-rammed casing clean-outs, ballast and filter media removal, and inside structures and buildings material removal. It also provides pipeline excavation services for pipeline crossing and tie-in, hydro probing, utility conflict, and oil and fuel spill applications; slot trenching services; and service repair pits for gas service tie-in, electric cable fault repair, water main and service repair, and telecom splice applications. In addition, the company offers anode installation, emergency response, and potholing services; designs, engineers, and supplies excavation shoring systems; pole and piling holes services for utility, traffic signal, and transmission pole holes, as well as light standard and sign post holes; pole removals; end-bearing, pilot holes for friction, and spread footing piles; well monitor installations applications; and tanks and tank cleaning services. It serves the aggregate, construction, engineering, industrial, mining, oil and gas, power generation, transportation, and utility industries, as well as railway hydrovac services. The company was formerly known as Badger Daylighting Ltd. and changed its name to Badger Infrastructure Solutions Ltd. in May 2021. Badger Infrastructure Solutions Ltd. was founded in 1992 and is headquartered in Calgary, Canada.

About Larsen & Toubro

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and minerals, and metals. The Hydrocarbon segment provides front-end design, modular fabrication, procurement, project management, construction, installation, and commissioning for the oil and gas industry. The Power segment offers coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages. The Heavy Engineering segment manufactures and supplies custom designed, engineered critical equipment and systems to the fertilizer, refinery, petrochemical, chemical, oil and gas, and thermal and nuclear power industries. The Defence Engineering segment designs, develops, produces, and supports equipment, systems, and platforms for the defense and aerospace sectors. This segment also designs, constructs, and repairs/refits defense vessels. The Others segment engages in the realty, smart world, and communication businesses, including military communications; marketing and servicing of construction and mining machinery and parts; and manufacturing and sale of rubber processing machinery. This segment also operates digital platforms, such as SuFin for B2B e-commerce; and EduTech offers engineering and technology related content. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.