Sterling Infrastructure (NASDAQ:STRL) vs. IES (NASDAQ:IESC) Financial Survey

Sterling Infrastructure (NASDAQ:STRL) and IES (NASDAQ:IESC) are both mid-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Sterling Infrastructure has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, IES has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

80.9% of Sterling Infrastructure shares are owned by institutional investors. Comparatively, 86.6% of IES shares are owned by institutional investors. 3.7% of Sterling Infrastructure shares are owned by company insiders. Comparatively, 59.2% of IES shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Sterling Infrastructure and IES”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sterling Infrastructure	$2.07 billion	2.14	$138.65 million	$4.81	29.78
IES	$2.76 billion	1.47	$92.59 million	$6.63	30.12

Sterling Infrastructure has higher earnings, but lower revenue than IES. Sterling Infrastructure is trading at a lower price-to-earnings ratio than IES, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sterling Infrastructure and IES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sterling Infrastructure	7.85%	25.64%	8.95%
IES	6.30%	34.38%	16.39%

Analyst Ratings

This is a summary of recent ratings and price targets for Sterling Infrastructure and IES, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sterling Infrastructure	0	1	0	0	2.00
IES	0	0	0	0	N/A

Sterling Infrastructure currently has a consensus target price of $115.00, indicating a potential downside of 19.73%. Given Sterling Infrastructure’s higher probable upside, equities research analysts plainly believe Sterling Infrastructure is more favorable than IES.

Summary

IES beats Sterling Infrastructure on 8 of the 12 factors compared between the two stocks.

About Sterling Infrastructure

Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions primarily in the United States. It operates through three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors. The Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads. The Building Solutions segment provides residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work for developers and general contractors, as well as provides plumbing services for residential builds. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.

About IES

IES Holdings, Inc. engages in the design and installation of integrated electrical and technology systems, and provides infrastructure products and services in the United States. The Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.