Comparing Great Lakes Dredge & Dock (NASDAQ:GLDD) & Tutor Perini (NYSE:TPC)

Great Lakes Dredge & Dock (NASDAQ:GLDD) and Tutor Perini (NYSE:TPC) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

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%

Volatility and Risk

Great Lakes Dredge & Dock has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Tutor Perini has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Earnings and Valuation

This table compares Great Lakes Dredge & Dock and Tutor Perini”s gross revenue, earnings per share 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	$4.33 billion	0.69	-$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.

Institutional and Insider Ownership

89.1% of Great Lakes Dredge & Dock shares are held by institutional investors. Comparatively, 65.0% of Tutor Perini shares are held by institutional investors. 2.0% of Great Lakes Dredge & Dock shares are held by company insiders. Comparatively, 17.3% of Tutor Perini shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Great Lakes Dredge & Dock and Tutor Perini, as provided 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 currently 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.