Head-To-Head Analysis: SMG Industries (OTCMKTS:SMGI) and North American Construction Group (NYSE:NOA)

SMG Industries (OTCMKTS:SMGI) and North American Construction Group (NYSE:NOA) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares SMG Industries and North American Construction Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMG Industries	N/A	N/A	N/A	$0.52	0.58
North American Construction Group	$591.92 million	0.88	$51.82 million	$1.75	11.13

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

Institutional & Insider Ownership

92.7% of SMG Industries shares are held by institutional investors. Comparatively, 61.7% of North American Construction Group shares are held by institutional investors. 9.7% of North American Construction Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for SMG Industries and North American Construction Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMG Industries	0	0	0	0	N/A
North American Construction Group	0	2	1	0	2.33

North American Construction Group has a consensus target price of $29.50, indicating a potential upside of 51.52%. Given North American Construction Group’s higher possible upside, analysts clearly believe North American Construction Group is more favorable than SMG Industries.

Profitability

This table compares SMG Industries and North American Construction Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SMG Industries	N/A	N/A	N/A
North American Construction Group	8.27%	24.51%	8.20%

Summary

North American Construction Group beats SMG Industries on 9 of the 10 factors compared between the two stocks.

About SMG Industries

SMG Industries Inc. operates as a transportation services company in the United States. It engages in the transportation of infrastructure components, such as bridge beams and power generation transformers; wind energy components; and midstream compressors. The company is also involved in the heavy haul of production equipment, heat exchangers, coolers, construction equipment, and refinery components; transportation of natural gas compressors; flatbed freight; and crane activities used to set equipment on compressor stations, pipeline infrastructure, and load drilling rig components. In addition, it offers drilling rig relocation services for drilling contractors and oil and gas operators; and freight brokerage and driveaway services. The company was formerly known as SMG Indium Resources Ltd. and changed its name to SMG Industries Inc. in April 2018. SMG Industries Inc. was incorporated in 2008 and is headquartered in Houston, Texas.

About North American Construction Group

North American Construction Group Ltd. provides equipment maintenance, and mining and heavy construction services in Canada, the United States, and Australia. Its Heavy Construction & Mining division offers constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining, pre-stripping/pit pioneering, overburden removal and stockpile, muskeg removal and stockpile, site preparation, air strip construction, site dewatering/perimeter ditching, tailings and process pipelines, haulage and access road construction, tailings dam construction and densification, mechanically stabilized earth walls, dyke construction, and reclamation services; and Equipment Maintenance services. As of December 31, 2022, the company operated a heavy equipment fleet of 637 units. It serves resource development and industrial construction sectors. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. North American Construction Group Ltd. was founded in 1953 and is headquartered in Acheson, Canada.