Analyzing Inno (NASDAQ:INHD) and Argan (NYSE:AGX)

Argan (NYSE:AGX) and Inno (NASDAQ:INHD) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Earnings and Valuation

This table compares Argan and Inno”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argan	$874.18 million	3.58	$85.46 million	$7.13	32.18
Inno	$890,000.00	45.19	-$3.21 million	N/A	N/A

Argan has higher revenue and earnings than Inno.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Argan and Inno, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argan	0	3	1	0	2.25
Inno	0	0	0	0	0.00

Argan presently has a consensus target price of $202.00, suggesting a potential downside of 11.97%. Given Argan’s stronger consensus rating and higher probable upside, equities analysts plainly believe Argan is more favorable than Inno.

Insider & Institutional Ownership

79.4% of Argan shares are owned by institutional investors. Comparatively, 0.2% of Inno shares are owned by institutional investors. 6.7% of Argan shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Argan has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Inno has a beta of -2.18, suggesting that its stock price is 318% less volatile than the S&P 500.

Profitability

This table compares Argan and Inno’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argan	11.00%	29.61%	12.82%
Inno	-244.24%	-84.48%	-74.24%

Summary

Argan beats Inno on 11 of the 12 factors compared between the two stocks.

About Argan

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 18 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and other commercial firms. The Industrial Services segment provides industrial construction and field services and vessel fabrication services for fertilizer, engineering and construction, forest products, and various other industrial companies in southeast region of the United States. The Telecom Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves electricity cooperative, state and local government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as federal government facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.

About Inno

Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.