Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) and Granite Construction (NYSE:GVA) are both small-cap construction companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitabiliy.
Volatility & Risk
Great Lakes Dredge & Dock Corporation has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Granite Construction has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Earnings and Valuation
This table compares Great Lakes Dredge & Dock Corporation and Granite Construction’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Great Lakes Dredge & Dock Corporation||$775.05 million||0.31||$76.01 million||($0.33)||-11.97|
|Granite Construction||$2.54 billion||0.78||$127.54 million||$1.07||46.69|
Granite Construction has higher revenue and earnings than Great Lakes Dredge & Dock Corporation. Great Lakes Dredge & Dock Corporation is trading at a lower price-to-earnings ratio than Granite Construction, indicating that it is currently the more affordable of the two stocks.
Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 1.0%. Great Lakes Dredge & Dock Corporation does not pay a dividend. Granite Construction pays out 48.6% of its earnings in the form of a dividend.
This table compares Great Lakes Dredge & Dock Corporation and Granite Construction’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Lakes Dredge & Dock Corporation||-2.70%||-0.23%||-0.06%|
This is a summary of recent ratings for Great Lakes Dredge & Dock Corporation and Granite Construction, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Lakes Dredge & Dock Corporation||0||2||0||0||2.00|
Great Lakes Dredge & Dock Corporation currently has a consensus price target of $4.00, indicating a potential upside of 1.27%. Granite Construction has a consensus price target of $61.25, indicating a potential upside of 22.60%. Given Granite Construction’s stronger consensus rating and higher possible upside, analysts clearly believe Granite Construction is more favorable than Great Lakes Dredge & Dock Corporation.
Institutional & Insider Ownership
71.9% of Great Lakes Dredge & Dock Corporation shares are owned by institutional investors. Comparatively, 93.8% of Granite Construction shares are owned by institutional investors. 8.2% of Great Lakes Dredge & Dock Corporation shares are owned by company insiders. Comparatively, 1.3% of Granite Construction shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Granite Construction beats Great Lakes Dredge & Dock Corporation on 13 of the 15 factors compared between the two stocks.
Great Lakes Dredge & Dock Corporation Company Profile
Great Lakes Dredge & Dock Corporation is a provider of dredging services. The Company provides dredging services in the East, West and Gulf Coasts of the United States and around the world. It operates in two segments: Dredging Operations, which involves enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock, and Environmental & Remediation Operations, which provides construction services on soil, water and sediment for clients in both the public and private sectors. It has interest in Amboy Aggregates, which is involved in mining sand from the entrance channel to New York Harbor for providing sand and aggregate for use in road and building construction, and for clean land fill; Lower Main Street Development, LLC (Lower Main), which is engaged in land development and sale business, and TerraSea Environmental Solutions (TerraSea), which is engaged in the environmental services business.
Granite Construction Company Profile
Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. The Company operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.
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