Energy Services of America (NASDAQ:ESOA – Get Free Report) and EMCOR Group (NYSE:EME – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Profitability
This table compares Energy Services of America and EMCOR Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Energy Services of America | N/A | N/A | N/A |
| EMCOR Group | 7.74% | 35.49% | 14.12% |
Valuation & Earnings
This table compares Energy Services of America and EMCOR Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Energy Services of America | $467.37 million | N/A | N/A | $0.18 | 60.77 |
| EMCOR Group | $16.99 billion | 1.98 | $1.27 billion | $32.15 | 23.69 |
EMCOR Group has higher revenue and earnings than Energy Services of America. EMCOR Group is trading at a lower price-to-earnings ratio than Energy Services of America, indicating that it is currently the more affordable of the two stocks.
Dividends
Energy Services of America pays an annual dividend of $0.16 per share and has a dividend yield of 1.4%. EMCOR Group pays an annual dividend of $1.60 per share and has a dividend yield of 0.2%. Energy Services of America pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EMCOR Group pays out 5.0% of its earnings in the form of a dividend. EMCOR Group has increased its dividend for 5 consecutive years.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Energy Services of America and EMCOR Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Energy Services of America | 0 | 2 | 2 | 0 | 2.50 |
| EMCOR Group | 0 | 1 | 7 | 1 | 3.00 |
Energy Services of America presently has a consensus target price of $22.50, suggesting a potential upside of 102.34%. EMCOR Group has a consensus target price of $965.86, suggesting a potential upside of 26.80%. Given Energy Services of America’s higher probable upside, equities analysts clearly believe Energy Services of America is more favorable than EMCOR Group.
Insider & Institutional Ownership
2.1% of Energy Services of America shares are owned by institutional investors. Comparatively, 92.6% of EMCOR Group shares are owned by institutional investors. 44.7% of Energy Services of America shares are owned by insiders. Comparatively, 0.7% of EMCOR Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
EMCOR Group beats Energy Services of America on 11 of the 15 factors compared between the two stocks.
About Energy Services of America
Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.
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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