Critical Contrast: MasTec (MTZ) vs. Its Rivals

MasTec (NYSE:MTZ) is one of 188 publicly-traded companies in the “Construction & Engineering” industry, but how does it compare to its competitors? We will compare MasTec to related businesses based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Insider & Institutional Ownership

78.1% of MasTec shares are held by institutional investors. Comparatively, 48.9% of shares of all “Construction & Engineering” companies are held by institutional investors. 21.4% of MasTec shares are held by insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares MasTec and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MasTec	2.80%	18.85%	6.25%
MasTec Competitors	-4.05%	2.58%	3.81%

Analyst Recommendations

This is a summary of current ratings for MasTec and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MasTec	0	3	19	0	2.86
MasTec Competitors	842	3453	7326	357	2.60

MasTec presently has a consensus price target of $365.10, suggesting a potential upside of 96.26%. As a group, “Construction & Engineering” companies have a potential upside of 42.61%. Given MasTec’s stronger consensus rating and higher possible upside, research analysts clearly believe MasTec is more favorable than its competitors.

Risk & Volatility

MasTec has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, MasTec’s competitors have a beta of 1.56, meaning that their average share price is 56% more volatile than the S&P 500.

Valuation and Earnings

This table compares MasTec and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MasTec	$14.30 billion	$399.04 million	29.67
MasTec Competitors	$9.57 billion	$456.60 million	-5,802.65

MasTec has higher revenue, but lower earnings than its competitors. MasTec is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

MasTec beats its competitors on 11 of the 13 factors compared.

About MasTec

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company build infrastructure for wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; pipeline infrastructure, including natural gas, water, carbon capture sequestration, and other product transport; power delivery services, such as electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure, including roads, bridges, and rail; and water infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation, power generation, civil and industrial facilities, pipelines, and fiber optic and other cables, as well as install-to-the-home services. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and civil and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, including renewable and other energy providers, pipeline operators, civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.