Financial Contrast: Quanex Building Products (NYSE:NX) & Everus Construction Group (NYSE:ECG)

Quanex Building Products (NYSE:NX) and Everus Construction Group (NYSE:ECG) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Quanex Building Products and Everus Construction Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quanex Building Products	-15.45%	10.48%	4.40%
Everus Construction Group	5.07%	35.83%	12.27%

Earnings and Valuation

This table compares Quanex Building Products and Everus Construction Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quanex Building Products	$1.28 billion	0.55	$33.06 million	($6.22)	-2.45
Everus Construction Group	$2.85 billion	1.42	$143.42 million	$3.24	24.44

Everus Construction Group has higher revenue and earnings than Quanex Building Products. Quanex Building Products is trading at a lower price-to-earnings ratio than Everus Construction Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Quanex Building Products and Everus Construction Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quanex Building Products	0	1	0	0	2.00
Everus Construction Group	0	2	2	1	2.80

Everus Construction Group has a consensus target price of $82.00, indicating a potential upside of 3.56%. Given Everus Construction Group’s stronger consensus rating and higher probable upside, analysts clearly believe Everus Construction Group is more favorable than Quanex Building Products.

Institutional & Insider Ownership

97.5% of Quanex Building Products shares are owned by institutional investors. 2.2% of Quanex Building Products shares are owned by company insiders. Comparatively, 0.2% of Everus Construction Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Everus Construction Group beats Quanex Building Products on 12 of the 14 factors compared between the two stocks.

About Quanex Building Products

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, rest of Europe, Canada, Asia, the United Kingdom, and internationally. The company operates through three segments: North American Fenestration, European Fenestration, and North American Cabinet Components. It offers flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood products, as well as cabinet doors and other components for original equipment manufacturers (OEMs) in the kitchen and bathroom cabinet industry. In addition, the company provides various non-fenestration components and products, including solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. It sells its products to OEMs in the building products industry through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is based in Houston, Texas.

About Everus Construction Group

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.