Matrix Service (NASDAQ:MTRX – Get Free Report) and Tutor Perini (NYSE:TPC – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
Matrix Service has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Tutor Perini has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.
Institutional and Insider Ownership
78.4% of Matrix Service shares are owned by institutional investors. Comparatively, 65.0% of Tutor Perini shares are owned by institutional investors. 1.9% of Matrix Service shares are owned by insiders. Comparatively, 15.4% of Tutor Perini shares are owned 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.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Matrix Service | $873.63 million | 0.31 | -$2.58 million | ($0.09) | -106.33 |
| Tutor Perini | $5.54 billion | 0.78 | $80.44 million | $2.32 | 35.53 |
Tutor Perini has higher revenue and earnings than Matrix Service. Matrix Service is trading at a lower price-to-earnings ratio than Tutor Perini, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Matrix Service and Tutor Perini, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Matrix Service | 1 | 0 | 1 | 1 | 2.67 |
| Tutor Perini | 0 | 1 | 2 | 1 | 3.00 |
Matrix Service presently has a consensus price target of $16.50, suggesting a potential upside of 72.41%. Tutor Perini has a consensus price target of $105.00, suggesting a potential upside of 27.37%. Given Matrix Service’s higher probable upside, equities analysts plainly believe Matrix Service is more favorable than Tutor Perini.
Profitability
This table compares Matrix Service and Tutor Perini’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Matrix Service | -0.30% | 5.32% | 1.20% |
| Tutor Perini | 2.08% | 20.95% | 5.15% |
Summary
Tutor Perini beats Matrix Service on 12 of the 14 factors compared between the two stocks.
About Matrix Service
Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.
About Tutor Perini
Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies in the United States and internationally. It operates through three segments: Civil, Building, and Specialty Contractors. The Civil segment engages in the public works construction and the replacement and reconstruction of infrastructure; and offers contracting services, including construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities, as well as provides drilling, foundation, and excavation support for shoring, bridges, piers, roads, and highway projects. The Building segment offers range of services in various specialized building markets, such as hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional and detention facilities, biotech, pharmaceutical, industrial, and technology. The Specialty Contractors segment provides electrical, mechanical, plumbing, and fire protection systems, as well as heating, ventilation, and air conditioning services (HVAC) for civil and building construction projects in industrial, commercial, hospitality and gaming, and mass-transit end markets. It also offers pre-construction planning and project management services comprising planning and scheduling of the manpower, equipment, materials, and subcontractor services; and self-performed construction services consisting of site work, concrete forming and placement, and steel erection. The company was formerly known as Perini Corporation and changed its name to Tutor Perini Corporation in May 2009. Tutor Perini Corporation was founded in 1894 and is headquartered in Sylmar, California.
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