Primoris Services (NYSE:PRIM – Get Free Report) and China Railway Group (OTCMKTS:CRWOY – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Volatility & Risk
Primoris Services has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, China Railway Group has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.
Profitability
This table compares Primoris Services and China Railway Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Primoris Services | 1.92% | 9.96% | 3.67% |
| China Railway Group | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Primoris Services | 0 | 6 | 11 | 0 | 2.65 |
| China Railway Group | 0 | 0 | 0 | 0 | 0.00 |
Primoris Services presently has a consensus target price of $132.27, indicating a potential upside of 72.23%. Given Primoris Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Primoris Services is more favorable than China Railway Group.
Valuation & Earnings
This table compares Primoris Services and China Railway Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Primoris Services | $7.57 billion | 0.55 | $274.90 million | $2.55 | 30.12 |
| China Railway Group | $123.12 billion | 0.09 | $3.43 billion | N/A | N/A |
China Railway Group has higher revenue and earnings than Primoris Services.
Insider and Institutional Ownership
91.8% of Primoris Services shares are held by institutional investors. 1.1% of Primoris Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Primoris Services pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. China Railway Group pays an annual dividend of $0.49 per share and has a dividend yield of 4.3%. Primoris Services pays out 12.5% of its earnings in the form of a dividend. Primoris Services has increased its dividend for 1 consecutive years.
Summary
Primoris Services beats China Railway Group on 11 of the 15 factors compared between the two stocks.
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.
About China Railway Group
China Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People's Republic of China, Hong Kong, and Macau. Its Infrastructure Construction segment constructs railways, highways, bridges, tunnels, metropolitan railways, buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works. The company's Survey, Design and Consulting Services segment provides survey, design, consulting, research and development, feasibility study, and compliance certification services to infrastructure construction projects. Its Engineering Equipment and Component Manufacturing segment designs, researches and develops, manufactures, and sells turnouts, bridge steel structures, and other railway related equipment, engineering machinery, and materials. The company's Property Development segment develops, sells, and manages residential and commercial properties. Its Other Businesses segment is involved in mining, financial, service concession arrangements operation, merchandise trading, and other ancillary businesses. China Railway Group Limited was founded in 1950 and is based in Beijing, China.
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