Head to Head Analysis: APi Group (NYSE:APG) & Granite Construction (NYSE:GVA)
by Mitch Edgeman · The Markets DailyAPi Group (NYSE:APG – Get Free Report) and Granite Construction (NYSE:GVA – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Profitability
This table compares APi Group and Granite Construction’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| APi Group | 3.99% | 37.59% | 14.07% |
| Granite Construction | -3.32% | 27.83% | 7.17% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for APi Group and Granite Construction, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| APi Group | 0 | 2 | 6 | 1 | 2.89 |
| Granite Construction | 2 | 1 | 2 | 1 | 2.33 |
APi Group presently has a consensus target price of $52.57, suggesting a potential upside of 30.64%. Granite Construction has a consensus target price of $158.50, suggesting a potential upside of 33.22%. Given Granite Construction’s higher possible upside, analysts plainly believe Granite Construction is more favorable than APi Group.
Volatility & Risk
APi Group has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Granite Construction has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Earnings and Valuation
This table compares APi Group and Granite Construction”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| APi Group | $7.91 billion | 2.20 | $302.00 million | ($0.67) | -60.06 |
| Granite Construction | $4.97 billion | 1.05 | $193.00 million | ($4.31) | -27.60 |
APi Group has higher revenue and earnings than Granite Construction. APi Group is trading at a lower price-to-earnings ratio than Granite Construction, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
86.6% of APi Group shares are held by institutional investors. 18.7% of APi Group shares are held by insiders. Comparatively, 0.9% of Granite Construction shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
APi Group beats Granite Construction on 12 of the 14 factors compared between the two stocks.
About APi Group
APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.
About Granite Construction
Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar storage, and power related projects. The Materials segment is involved in the production of aggregates, asphalt concrete, liquid asphalt, and recycled materials production for internal use in our construction projects and sale to third parties. It also offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, railways, residential development, and energy development; and provides construction management professional services. It serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was incorporated in 1922 and is headquartered in Watsonville, California.