Larsen & Toubro (OTCMKTS:LTOUF – Get Free Report) and EMCOR Group (NYSE:EME – 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 dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings for Larsen & Toubro and EMCOR Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Larsen & Toubro | 0 | 0 | 1 | 0 | 3.00 |
| EMCOR Group | 0 | 1 | 8 | 1 | 3.00 |
EMCOR Group has a consensus target price of $965.86, indicating a potential upside of 24.55%. Given EMCOR Group’s higher probable upside, analysts plainly believe EMCOR Group is more favorable than Larsen & Toubro.
Dividends
Institutional and Insider Ownership
1.1% of Larsen & Toubro shares are held by institutional investors. Comparatively, 92.6% of EMCOR Group shares are held by institutional investors. 0.7% of EMCOR Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Larsen & Toubro and EMCOR Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Larsen & Toubro | N/A | N/A | N/A |
| EMCOR Group | 7.74% | 35.49% | 14.12% |
Valuation and Earnings
This table compares Larsen & Toubro and EMCOR Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Larsen & Toubro | N/A | N/A | N/A | $58.73 | 0.70 |
| EMCOR Group | $16.99 billion | 2.01 | $1.27 billion | $32.15 | 24.12 |
EMCOR Group has higher revenue and earnings than Larsen & Toubro. Larsen & Toubro is trading at a lower price-to-earnings ratio than EMCOR Group, indicating that it is currently the more affordable of the two stocks.
Summary
EMCOR Group beats Larsen & Toubro on 12 of the 14 factors compared between the two stocks.
About Larsen & Toubro
Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and minerals, and metals. The Hydrocarbon segment provides front-end design, modular fabrication, procurement, project management, construction, installation, and commissioning for the oil and gas industry. The Power segment offers coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages. The Heavy Engineering segment manufactures and supplies custom designed, engineered critical equipment and systems to the fertilizer, refinery, petrochemical, chemical, oil and gas, and thermal and nuclear power industries. The Defence Engineering segment designs, develops, produces, and supports equipment, systems, and platforms for the defense and aerospace sectors. This segment also designs, constructs, and repairs/refits defense vessels. The Others segment engages in the realty, smart world, and communication businesses, including military communications; marketing and servicing of construction and mining machinery and parts; and manufacturing and sale of rubber processing machinery. This segment also operates digital platforms, such as SuFin for B2B e-commerce; and EduTech offers engineering and technology related content. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.
About EMCOR Group
EMCOR Group, Inc. provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that covers commercial and government site-based operations and maintenance; facility management, maintenance, and services; energy efficiency retrofit services; military base operations support services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; modification and retrofit projects; and other building services, including reception, security, and catering services. In addition, it offers refinery turnaround planning and engineering; welding; overhaul and maintenance; instrumentation and electrical; and renewable energy services. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.
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