Great Lakes Dredge & Dock (NASDAQ:GLDD – Get Free Report) and Tutor Perini (NYSE:TPC – Get Free Report) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
89.1% of Great Lakes Dredge & Dock shares are owned by institutional investors. Comparatively, 65.0% of Tutor Perini shares are owned by institutional investors. 2.2% of Great Lakes Dredge & Dock shares are owned by insiders. Comparatively, 17.3% of Tutor Perini shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Great Lakes Dredge & Dock and Tutor Perini’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Great Lakes Dredge & Dock | 8.63% | 15.61% | 5.88% |
| Tutor Perini | -2.77% | -6.41% | -1.72% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Great Lakes Dredge & Dock | $762.69 million | 1.01 | $57.26 million | $1.05 | 10.81 |
| Tutor Perini | $123.98 billion | 0.02 | -$163.72 million | ($2.52) | -22.48 |
Great Lakes Dredge & Dock has higher earnings, but lower revenue than Tutor Perini. Tutor Perini is trading at a lower price-to-earnings ratio than Great Lakes Dredge & Dock, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Great Lakes Dredge & Dock has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Tutor Perini has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and price targets for Great Lakes Dredge & Dock and Tutor Perini, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Great Lakes Dredge & Dock | 0 | 0 | 1 | 1 | 3.50 |
| Tutor Perini | 0 | 0 | 3 | 1 | 3.25 |
Great Lakes Dredge & Dock presently has a consensus target price of $14.00, indicating a potential upside of 23.35%. Tutor Perini has a consensus target price of $60.00, indicating a potential upside of 5.89%. Given Great Lakes Dredge & Dock’s stronger consensus rating and higher probable upside, analysts clearly believe Great Lakes Dredge & Dock is more favorable than Tutor Perini.
Summary
Great Lakes Dredge & Dock beats Tutor Perini on 10 of the 14 factors compared between the two stocks.
About Great Lakes Dredge & Dock
Great Lakes Dredge & Dock Corp. engages in the provision of dredging services. Its projects include channel and port maintenance, channel deepening and port expansion, coastal protection and restoration, as well as land reclamation. The company was founded by William A. Lydon and Frederick C. Drews in 1890 and is headquartered in Houston, TX.
About Tutor Perini
Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies in the United States and internationally. It operates through three segments: Civil, Building, and Specialty Contractors. The Civil segment engages in the public works construction and the replacement and reconstruction of infrastructure; and offers contracting services, including construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities, as well as provides drilling, foundation, and excavation support for shoring, bridges, piers, roads, and highway projects. The Building segment offers range of services in various specialized building markets, such as hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional and detention facilities, biotech, pharmaceutical, industrial, and technology. The Specialty Contractors segment provides electrical, mechanical, plumbing, and fire protection systems, as well as heating, ventilation, and air conditioning services (HVAC) for civil and building construction projects in industrial, commercial, hospitality and gaming, and mass-transit end markets. It also offers pre-construction planning and project management services comprising planning and scheduling of the manpower, equipment, materials, and subcontractor services; and self-performed construction services consisting of site work, concrete forming and placement, and steel erection. The company was formerly known as Perini Corporation and changed its name to Tutor Perini Corporation in May 2009. Tutor Perini Corporation was founded in 1894 and is headquartered in Sylmar, California.
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