Great Lakes Dredge & Dock (NASDAQ:GLDD – Get Free Report) and Dycom Industries (NYSE:DY – Get Free Report) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability
This table compares Great Lakes Dredge & Dock and Dycom Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Great Lakes Dredge & Dock | 8.63% | 15.61% | 5.88% |
| Dycom Industries | 5.23% | 21.17% | 8.73% |
Risk and Volatility
Great Lakes Dredge & Dock has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Dycom Industries has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Great Lakes Dredge & Dock | 0 | 1 | 0 | 1 | 3.00 |
| Dycom Industries | 0 | 1 | 8 | 1 | 3.00 |
Dycom Industries has a consensus price target of $293.25, indicating a potential upside of 2.33%. Given Dycom Industries’ higher possible upside, analysts clearly believe Dycom Industries is more favorable than Great Lakes Dredge & Dock.
Valuation & Earnings
This table compares Great Lakes Dredge & Dock and Dycom Industries”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Great Lakes Dredge & Dock | $762.69 million | 1.07 | $57.26 million | $1.05 | 11.39 |
| Dycom Industries | $4.70 billion | 1.76 | $233.41 million | $8.90 | 32.20 |
Dycom Industries has higher revenue and earnings than Great Lakes Dredge & Dock. Great Lakes Dredge & Dock is trading at a lower price-to-earnings ratio than Dycom Industries, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.1% of Great Lakes Dredge & Dock shares are held by institutional investors. Comparatively, 98.3% of Dycom Industries shares are held by institutional investors. 2.2% of Great Lakes Dredge & Dock shares are held by insiders. Comparatively, 3.7% of Dycom Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Dycom Industries beats Great Lakes Dredge & Dock on 11 of the 13 factors compared between the two stocks.
About Great Lakes Dredge & Dock
Great Lakes Dredge & Dock Corp. engages in the provision of dredging services. Its projects include channel and port maintenance, channel deepening and port expansion, coastal protection and restoration, as well as land reclamation. The company was founded by William A. Lydon and Frederick C. Drews in 1890 and is headquartered in Houston, TX.
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.
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