SU Group (NASDAQ:SUGP) and Quanta Services (NYSE:PWR) Head-To-Head Analysis

SU Group (NASDAQ:SUGP) and Quanta Services (NYSE:PWR) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares SU Group and Quanta Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SU Group	N/A	N/A	N/A
Quanta Services	3.74%	18.06%	7.08%

Risk and Volatility

SU Group has a beta of 2.76, indicating that its share price is 176% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for SU Group and Quanta Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SU Group	0	0	0	0	0.00
Quanta Services	0	10	12	2	2.67

Quanta Services has a consensus price target of $362.25, indicating a potential downside of 14.17%. Given Quanta Services’ stronger consensus rating and higher possible upside, analysts clearly believe Quanta Services is more favorable than SU Group.

Earnings & Valuation

This table compares SU Group and Quanta Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SU Group	$23.43 million	0.53	$1.37 million	N/A	N/A
Quanta Services	$23.67 billion	2.64	$904.82 million	$6.20	68.07

Quanta Services has higher revenue and earnings than SU Group.

Institutional and Insider Ownership

68.1% of SU Group shares are held by institutional investors. Comparatively, 90.5% of Quanta Services shares are held by institutional investors. 1.1% of Quanta Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Quanta Services beats SU Group on 12 of the 13 factors compared between the two stocks.

About SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.

About Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.