Argan (NYSE:AGX) and Obayashi (OTCMKTS:OBYCF) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Argan pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Obayashi does not pay a dividend. Argan has increased its dividend for 2 consecutive years.
This is a breakdown of recent recommendations and price targets for Argan and Obayashi, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Argan presently has a consensus price target of $62.00, suggesting a potential upside of 21.57%.
Valuation & Earnings
This table compares Argan and Obayashi’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Argan||$482.15 million||1.65||$72.01 million||N/A||N/A|
|Obayashi||$17.16 billion||N/A||$872.20 million||N/A||N/A|
Obayashi has higher revenue and earnings than Argan.
Insider and Institutional Ownership
84.9% of Argan shares are held by institutional investors. 7.5% of Argan shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Argan and Obayashi’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Argan has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Obayashi has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.
Argan beats Obayashi on 10 of the 12 factors compared between the two stocks.
Argan Company Profile
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, development, technical, and consulting services to the power generation and renewable energy markets. The company's Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for 44 projects with approximately 15,000 megawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and global energy plant construction firms. Its Industrial Fabrication and Field Services segment provides industrial steel fabrication and field services to light and heavy industrial organizations that comprise forest products, power, large fertilizer, and mining and petrochemical companies in southern region of the United States. The company's Telecommunications Infrastructure Services segment offers outside plant cabling services, including trench-less directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also offers inside premises wiring services consisting of structuring, cabling, terminations, and connectivity that provide the physical transport for high speed data, voice, video, and security networks. This segment serves state and local government agencies, regional communications service providers, electric utilities, other commercial customers, and federal government facilities, including cleared facilities in the mid-Atlantic region. Argan, Inc. was founded in 1961 and is headquartered in Rockville, Maryland.
Obayashi Company Profile
Obayashi Corp. engages in the construction and real estate business. It operates through the following segments: Domestic Building Construction, Overseas Building Construction, Domestic Civil Engineering, Overseas Civil Engineering, Real Estate, and Others. The Domestic Building Construction segment engages in building construction contracts and related businesses within Japan. The Overseas Building Construction segment engages in building construction contracts and related businesses outside Japan. The Domestic Civil Engineering segment handles civil engineering construction contracts and related businesses within Japan. The Overseas Civil Engineering segment deals with civil engineering construction contracts and related businesses outside Japan. The Real Estate segment handles the purchase, sale, development and rent of real estate properties. The Others segment engages in Private Finance Initiative (PFI), finance, renewable energy, and operation of golf courses. The company was founded by Yoshigoro Obayashi in January 1892 and is headquartered in Tokyo, Japan.
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