Comparing Primoris Services (NYSE:PRIM) & Dycom Industries (NYSE:DY)
by Michael Walen · The Markets DailyDycom Industries (NYSE:DY – Get Free Report) and Primoris Services (NYSE:PRIM – Get Free Report) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Insider and Institutional Ownership
98.3% of Dycom Industries shares are held by institutional investors. Comparatively, 91.8% of Primoris Services shares are held by institutional investors. 1.2% of Dycom Industries shares are held by insiders. Comparatively, 1.1% of Primoris Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Dycom Industries and Primoris Services”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dycom Industries | $6.88 billion | 0.85 | $281.19 million | $10.99 | 17.55 |
| Primoris Services | $7.06 billion | 0.45 | $274.90 million | $1.77 | 33.64 |
Dycom Industries has higher earnings, but lower revenue than Primoris Services. Dycom Industries 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 Dycom Industries and Primoris Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dycom Industries | 4.79% | 25.30% | 8.39% |
| Primoris Services | 1.36% | 7.72% | 2.82% |
Analyst Ratings
This is a breakdown of current recommendations for Dycom Industries and Primoris Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dycom Industries | 0 | 3 | 10 | 0 | 2.77 |
| Primoris Services | 0 | 7 | 10 | 0 | 2.59 |
Dycom Industries currently has a consensus target price of $502.92, indicating a potential upside of 160.82%. Primoris Services has a consensus target price of $118.00, indicating a potential upside of 98.16%. Given Dycom Industries’ stronger consensus rating and higher probable upside, research analysts plainly believe Dycom Industries is more favorable than Primoris Services.
Volatility & Risk
Dycom Industries has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Primoris Services has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
Summary
Dycom Industries beats Primoris Services on 11 of the 13 factors compared between the two stocks.
About Dycom Industries
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 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.