Primoris Services (NYSE:PRIM) & Alfa Laval (OTCMKTS:ALFVY) Financial Comparison
by Danessa Lincoln · The Markets DailyAlfa Laval (OTCMKTS:ALFVY – Get Free Report) and Primoris Services (NYSE:PRIM – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.
Institutional and Insider Ownership
0.0% of Alfa Laval shares are owned by institutional investors. Comparatively, 91.8% of Primoris Services shares are owned by institutional investors. 1.1% of Primoris Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Alfa Laval has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Primoris Services has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Dividends
Alfa Laval pays an annual dividend of $0.61 per share and has a dividend yield of 1.1%. Primoris Services pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Alfa Laval pays out 28.9% of its earnings in the form of a dividend. Primoris Services pays out 12.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Primoris Services has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Alfa Laval and Primoris Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alfa Laval | 1 | 2 | 4 | 0 | 2.43 |
| Primoris Services | 0 | 7 | 10 | 0 | 2.59 |
Primoris Services has a consensus price target of $127.60, suggesting a potential upside of 75.53%. Given Primoris Services’ stronger consensus rating and higher possible upside, analysts clearly believe Primoris Services is more favorable than Alfa Laval.
Valuation & Earnings
This table compares Alfa Laval and Primoris Services”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alfa Laval | $7.12 billion | 3.31 | $845.40 million | $2.11 | 27.05 |
| Primoris Services | $7.57 billion | 0.52 | $274.90 million | $2.55 | 28.51 |
Alfa Laval has higher earnings, but lower revenue than Primoris Services. Alfa Laval is trading at a lower price-to-earnings ratio than Primoris Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alfa Laval and Primoris Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alfa Laval | 11.63% | 18.41% | 8.16% |
| Primoris Services | 1.92% | 9.96% | 3.67% |
Summary
Primoris Services beats Alfa Laval on 11 of the 17 factors compared between the two stocks.
About Alfa Laval
Alfa Laval Corporate AB provides heat transfer, separation, and fluid handling products and solutions worldwide. It operates in three divisions: Energy, Food & Water, and Marine. The company offers oil/gas-fired steam and composite steam boilers, exhaust gas economizer, and ballast water treatment systems, and exhaust gas cleaning products. It also provides sensing and control, cleaning validation, condition monitoring, agitators, tank, powder mixers, fittings, and tubes, as well as wall mounted cleaning nozzles, rotary jet and heads; and tank accessories and covers. In addition, the company offers centrifugal, rotary lobe, three screw, twin screw, and circumferential piston pumps. Further, it provides butterfly, control and check, double seal, diaphragm, double seat, regulating, safety, sampling, shutter, single seat, and ball valves. Additionally, the company offers heat exchanger, tube-in-tube heat exchangers, and process shell-and-tube heat exchangers. Furthermore, it provides finned tube air heat, scraped surface heat exchangers, and various plate heat exchangers, wet surface, and HYAC hybrid air coolers. The company also offers decanters and separator related products. It serves energy, utilities, home, personal care, food, dairy, beverage, marine, transportation, pharmaceutical, biotech, water, and wastewater industries. Alfa Laval Corporate AB was founded in 1883 and is headquartered in Lund, Sweden.
About Primoris Services
Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.