Critical Analysis: Sterling Infrastructure (NASDAQ:STRL) & SKK (NASDAQ:SKK)

SKK (NASDAQ:SKK) and Sterling Infrastructure (NASDAQ:STRL) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Profitability

This table compares SKK and Sterling Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SKK	N/A	N/A	N/A
Sterling Infrastructure	13.33%	27.93%	11.18%

Institutional and Insider Ownership

80.9% of Sterling Infrastructure shares are owned by institutional investors. 3.7% of Sterling Infrastructure 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.

Valuation and Earnings

This table compares SKK and Sterling Infrastructure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SKK	N/A	N/A	N/A	N/A	N/A
Sterling Infrastructure	$2.14 billion	4.87	$257.46 million	$9.20	37.19

Sterling Infrastructure has higher revenue and earnings than SKK.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SKK and Sterling Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SKK	0	0	0	0	0.00
Sterling Infrastructure	0	0	2	1	3.33

Sterling Infrastructure has a consensus price target of $355.00, indicating a potential upside of 3.77%. Given Sterling Infrastructure’s stronger consensus rating and higher possible upside, analysts plainly believe Sterling Infrastructure is more favorable than SKK.

Summary

Sterling Infrastructure beats SKK on 10 of the 10 factors compared between the two stocks.

About SKK

SKK Holdings Limited, through its subsidiaries, provides civil engineering services in Singapore. It undertakes subsurface utility works, such as power and telecommunication cable laying works, water pipeline works, and sewer rehabilitation works. The company also offers gas pipeline and sewer construction works; and underground piping, underground utility infrastructure construction and maintenance, horizontal directional drilling, and plumbing and sanitary works. It serves government authorities, utility companies, or contractors. The company was founded in 2013 and is headquartered in Singapore.

About Sterling Infrastructure

Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions primarily in the United States. It operates through three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors. The Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads. The Building Solutions segment provides residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work for developers and general contractors, as well as provides plumbing services for residential builds. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.