Head-To-Head Comparison: Quanta Services (NYSE:PWR) versus Magnera (NYSE:MAGN)

Magnera (NYSE:MAGN) and Quanta Services (NYSE:PWR) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Magnera and Quanta Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.10	-$159.00 million	($2.61)	-3.45
Quanta Services	$28.48 billion	2.95	$1.03 billion	$6.80	82.52

Quanta Services has higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Magnera and Quanta Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnera	-4.04%	-12.30%	-3.31%
Quanta Services	3.61%	18.10%	6.84%

Insider & Institutional Ownership

76.9% of Magnera shares are owned by institutional investors. Comparatively, 90.5% of Quanta Services shares are owned by institutional investors. 1.0% of Magnera shares are owned by insiders. Comparatively, 1.1% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Magnera has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Magnera and Quanta Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	2	0	0	1.67
Quanta Services	0	6	18	0	2.75

Magnera presently has a consensus price target of $14.00, indicating a potential upside of 55.47%. Quanta Services has a consensus price target of $593.23, indicating a potential upside of 5.72%. Given Magnera’s higher possible upside, equities research analysts clearly believe Magnera is more favorable than Quanta Services.

Summary

Quanta Services beats Magnera on 12 of the 14 factors compared between the two stocks.

About Magnera

Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.

About Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.