Analyzing Arcosa (NYSE:ACA) and Everus Construction Group (NYSE:ECG)

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

Institutional and Insider Ownership

90.7% of Arcosa shares are owned by institutional investors. 0.2% of Everus Construction Group shares are owned by company insiders. Comparatively, 1.2% of Arcosa shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Everus Construction Group and Arcosa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everus Construction Group	0	2	2	1	2.80
Arcosa	0	0	3	0	3.00

Everus Construction Group presently has a consensus target price of $82.00, suggesting a potential downside of 1.34%. Arcosa has a consensus target price of $112.00, suggesting a potential upside of 21.53%. Given Arcosa’s stronger consensus rating and higher possible upside, analysts clearly believe Arcosa is more favorable than Everus Construction Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everus Construction Group	5.07%	35.83%	12.27%
Arcosa	3.45%	6.25%	3.19%

Valuation & Earnings

This table compares Everus Construction Group and Arcosa”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everus Construction Group	$3.27 billion	1.30	$143.42 million	$3.24	25.65
Arcosa	$2.57 billion	1.76	$93.70 million	$1.88	49.02

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

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.

About Arcosa

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in the United States. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment offers utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars and transportation equipment; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.