Financial Survey: Dycom Industries (NYSE:DY) vs. Stantec (NYSE:STN)

by · The Markets Daily

Dycom Industries (NYSE:DY – Get Free Report) and Stantec (NYSE:STN – Get Free Report) are both mid-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Dycom Industries and Stantec, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Dycom Industries021002.83
Stantec02502.71

Dycom Industries currently has a consensus price target of $502.92, indicating a potential upside of 82.97%. Stantec has a consensus price target of $175.00, indicating a potential upside of 160.28%. Given Stantec’s higher probable upside, analysts plainly believe Stantec is more favorable than Dycom Industries.

Volatility and Risk

Dycom Industries has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Stantec has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

98.3% of Dycom Industries shares are held by institutional investors. Comparatively, 63.9% of Stantec shares are held by institutional investors. 1.2% of Dycom Industries shares are held by company insiders. Comparatively, 0.5% of Stantec shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Dycom Industries and Stantec’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Dycom Industries4.79%25.30%8.39%
Stantec5.91%19.70%8.07%

Earnings & Valuation

This table compares Dycom Industries and Stantec”s gross revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Dycom Industries$5.55 billion1.49$281.19 million$10.9925.01
Stantec$5.83 billion1.29$343.11 million$3.2120.95

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

Summary

Dycom Industries beats Stantec on 10 of the 14 factors compared between the two stocks.

About Dycom Industries

(Get Free Report)

Dycom Industries, Inc. provides specialty contracting services to the telecommunications infrastructure and utility industries in the United States. The company offers engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems; wireless networks in connection with the deployment of macro cell and new small cell sites; and program and project management and inspection personnel. It also provides construction, maintenance, and installation services for telephone companies and cable multiple system operators, such as placement and splicing of copper, fiber, and coaxial cables; tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; underground facility locating services comprising locating telephone, cable television, power, water, sewer, and gas lines; installation and maintenance of customer premise equipment, including digital video recorders, set top boxes, and modems for cable system operators; and construction and maintenance services for electric and gas utilities, and other customers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.

About Stantec

(Get Free Report)

Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. The company also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, it offers planning and design services to clients in residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration sectors; architectural and interior design, and planning services in the science and technology, commercial workplace, higher education, residential, and hospitality markets. Further, the company provides transportation advisory, transport engineering, and technical design; project delivery consultancy services for mining, resources, and industrial infrastructure projects; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; and environmental and cultural resource compliance services. Additionally, it offers consulting services in sustainable building design, energy infrastructure upgrades, sustainable district heating network, and e-mobility; and planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.