Granite Construction (NYSE: GVA) and Grana y Montero S.A.A. (NYSE:GRAM) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Granite Construction and Grana y Montero S.A.A., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Construction 0 1 6 0 2.86
Grana y Montero S.A.A. 2 0 0 0 1.00

Granite Construction presently has a consensus price target of $63.67, suggesting a potential upside of 13.67%. Given Granite Construction’s stronger consensus rating and higher probable upside, analysts plainly believe Granite Construction is more favorable than Grana y Montero S.A.A..

Volatility and Risk

Granite Construction has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Grana y Montero S.A.A. has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

99.0% of Granite Construction shares are owned by institutional investors. Comparatively, 11.8% of Grana y Montero S.A.A. shares are owned by institutional investors. 1.3% of Granite Construction shares are owned by insiders. Comparatively, 27.4% of Grana y Montero S.A.A. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Granite Construction and Grana y Montero S.A.A.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Granite Construction $2.70 billion 0.83 $126.96 million $1.07 52.35
Grana y Montero S.A.A. N/A N/A N/A $0.11 39.55

Granite Construction has higher revenue and earnings than Grana y Montero S.A.A.. Grana y Montero S.A.A. is trading at a lower price-to-earnings ratio than Granite Construction, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Granite Construction and Grana y Montero S.A.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Construction 1.61% 4.80% 2.49%
Grana y Montero S.A.A. 0.82% 1.55% 0.52%

Dividends

Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Grana y Montero S.A.A. does not pay a dividend. Granite Construction pays out 48.6% of its earnings in the form of a dividend.

Summary

Granite Construction beats Grana y Montero S.A.A. on 12 of the 14 factors compared between the two stocks.

Granite Construction Company Profile

Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. The Company operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.

Grana y Montero S.A.A. Company Profile

Grana y Montero SAA is a Peru-based holding company primarily engaged in the four business areas: Construction and Engineering Industry, Real Estate, Oil Services, and Operation of Public Concessions and Business Support Services. Through its subsidiaries, the Company provides such services as the development and management of real estate properties and leisure facilities; the exploration, production and sale of oil, natural gas and its derivates; the storage and distribution of combustibles; information technology services; engineering consultancy; the operation and maintenance of rails and roads concessions; as well as the execution and management of projects related to the generation of electric power; among others. The Company owns such subsidiaries as GMD SA, Adexus SA, Concar SA, Survial SA, Norvial SA and Promotores Asociados de Inmobiliarios SA, among others.

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