The Shaw Group (NYSE: SHAW) and Emcor Group (NYSE:EME) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares The Shaw Group and Emcor Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Shaw Group N/A N/A N/A
Emcor Group 2.82% 13.94% 5.63%

Earnings and Valuation

This table compares The Shaw Group and Emcor Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Shaw Group N/A N/A N/A $3.25 N/A
Emcor Group $7.55 billion 0.64 $181.93 million $3.58 22.78

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

Analyst Ratings

This is a breakdown of recent recommendations for The Shaw Group and Emcor Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Shaw Group 0 0 0 0 N/A
Emcor Group 0 2 1 0 2.33

Emcor Group has a consensus target price of $88.00, suggesting a potential upside of 7.91%.

Dividends

Emcor Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. The Shaw Group does not pay a dividend. Emcor Group pays out 8.9% of its earnings in the form of a dividend.

Institutional & Insider Ownership

94.3% of Emcor Group shares are held by institutional investors. 2.0% of Emcor Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Emcor Group beats The Shaw Group on 9 of the 10 factors compared between the two stocks.

About The Shaw Group

The Shaw Group Inc. (Shaw) is a provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to a diverse client base that includes multinational and national oil companies and industrial corporations, regulated utilities, independent and merchant power producers, and government agencies. The Company has developed and acquired intellectual property, including induction pipe bending technology and environmental decontamination technologies. Its segments include Power, Plant Services, Environmental & Infrastructure (E&I), Fabrication & Manufacturing (F&M), Energy & Chemicals (E&C) Segment, Investment in Westinghouse, and Corporate segment. Effective August 31, 2012, the Company completed the divestiture of its Energy & Chemicals business to Technip. On January 4, 2013, TOSHIBA CORP acquired a 20% stake in Westinghouse from Shaw Group Inc.

About Emcor Group

EMCOR Group, Inc. is an electrical and mechanical construction, and facilities services firm in the United States. The Company provides building services and industrial services. Its segments are United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services, and United Kingdom building services. As of December 31, 2016, its services were provided to a range of commercial, industrial, utility and institutional customers through approximately 75 operating subsidiaries and joint venture entities. It is providing construction services relating to electrical and mechanical systems in various types of non-residential and certain residential facilities, and in providing services relating to the operation, maintenance and management of facilities, including refineries and petrochemical plants. It operates various electrical and mechanical systems.

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