Critical Comparison: Bowman Consulting Group (NASDAQ:BWMN) vs. Granite Construction (NYSE:GVA)

Granite Construction (NYSE:GVAGet Free Report) and Bowman Consulting Group (NASDAQ:BWMNGet Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

This table compares Granite Construction and Bowman Consulting Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Construction -3.32% 27.83% 7.17%
Bowman Consulting Group 1.30% 2.67% 1.20%

Analyst Recommendations

This is a summary of recent recommendations for Granite Construction and Bowman Consulting Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Construction 1 2 2 1 2.50
Bowman Consulting Group 1 7 0 0 1.88

Granite Construction currently has a consensus price target of $158.50, indicating a potential upside of 27.74%. Bowman Consulting Group has a consensus price target of $44.71, indicating a potential upside of 4.94%. Given Granite Construction’s stronger consensus rating and higher probable upside, equities analysts clearly believe Granite Construction is more favorable than Bowman Consulting Group.

Insider and Institutional Ownership

63.2% of Bowman Consulting Group shares are owned by institutional investors. 0.9% of Granite Construction shares are owned by company insiders. Comparatively, 17.5% of Bowman Consulting Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Granite Construction and Bowman Consulting Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Granite Construction $4.42 billion 1.23 $193.00 million ($4.31) -28.79
Bowman Consulting Group $490.02 million 1.51 $12.85 million $0.40 106.52

Granite Construction has higher revenue and earnings than Bowman Consulting Group. Granite Construction is trading at a lower price-to-earnings ratio than Bowman Consulting Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Granite Construction has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Bowman Consulting Group has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Summary

Granite Construction beats Bowman Consulting Group on 8 of the 15 factors compared between the two stocks.

About Granite Construction

(Get Free Report)

Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar storage, and power related projects. The Materials segment is involved in the production of aggregates, asphalt concrete, liquid asphalt, and recycled materials production for internal use in our construction projects and sale to third parties. It also offers site preparation, mining, and infrastructure services for residential development, energy development, commercial and industrial sites, railways, residential development, and energy development; and provides construction management professional services. It serves federal agencies, state departments of transportation, local transit authorities, county and city public works departments, school districts and developers, utilities, contractors, landscapers, manufacturers of products requiring aggregate materials, retailers, homeowners, farmers, brokers, and private owners of industrial, commercial, and residential sites. Granite Construction Incorporated was incorporated in 1922 and is headquartered in Watsonville, California.

About Bowman Consulting Group

(Get Free Report)

Bowman Consulting Group Ltd. provides a range of real estate, energy, infrastructure, and environmental management solutions in the United States. It offers civil and site engineering services, such as conceptual land planning, environmental consulting and permitting, planning/zoning and entitlements, roadway and highway designs, erosion and sediment designs, stormwater management designs, construction administration, traffic studies, floodplain studies, and utility relocation designs; and commissioning and energy efficiency services comprise construction observation, direct systems functional performance testing, system development readiness checklist, post occupancy review, review of construction documents, deferred/seasonal functional testing, final commissioning report, and commissioning review of submittals. The company also provides construction management services, including constructability review, value engineering, budgeting and cost estimating, interagency and utility coordination, onsite observation and report evaluation, public communication and outreach, and resident engineer services, as well as bid solicitation, documentation, and preparation services; and environmental consulting services consisting of wetlands and waters of the U.S. delineations, natural resources inventories, wildlife and vegetation surveys, threatened and endangered species surveys, endangered species conservation and management, wetland creation and enhancement design, NEPA documentation, section 404/401 permitting and compliance, NPDES permitting, and phase I environmental site assessment. In addition, it offers landscape architecture, land procurement and right-of-way acquisition, structural engineering, surveying and geospatial engineering, and transportation and water resources engineering services, as well as mechanical, electrical, and plumbing engineering services. The company was incorporated in 1995 and is headquartered in Reston, Virginia.

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