Argan (NYSE:AGX – Get Free Report) and Connectm Technology Solutions (NASDAQ:CNTM – Get Free Report) are both small-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Volatility & Risk
Argan has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Connectm Technology Solutions has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.
Insider and Institutional Ownership
79.4% of Argan shares are held by institutional investors. Comparatively, 79.6% of Connectm Technology Solutions shares are held by institutional investors. 11.9% of Argan shares are held by company insiders. Comparatively, 17.5% of Connectm Technology Solutions shares are held by company 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.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Argan | $573.33 million | 2.97 | $32.36 million | $3.18 | 39.66 |
Connectm Technology Solutions | N/A | N/A | -$14.94 million | N/A | N/A |
Argan has higher revenue and earnings than Connectm Technology Solutions.
Profitability
This table compares Argan and Connectm Technology Solutions’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Argan | 6.11% | 14.80% | 6.93% |
Connectm Technology Solutions | N/A | N/A | -20.55% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Argan and Connectm Technology Solutions, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Argan | 0 | 0 | 1 | 0 | 3.00 |
Connectm Technology Solutions | 0 | 0 | 0 | 0 | N/A |
Argan presently has a consensus target price of $85.00, indicating a potential downside of 32.60%. Given Argan’s higher possible upside, analysts clearly believe Argan is more favorable than Connectm Technology Solutions.
Summary
Argan beats Connectm Technology Solutions on 8 of the 10 factors compared between the two stocks.
About Argan
Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects 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 projects with approximately 18 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and other commercial firms. The Industrial Services segment provides industrial construction and field services and vessel fabrication services for fertilizer, engineering and construction, forest products, and various other industrial companies in southeast region of the United States. The Telecom Services segment offers trenchless 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 provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves electricity cooperative, state and local government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as federal government facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.
About Connectm Technology Solutions
ConnectM Technology Solutions, Inc., a technology company, focuses on advancing the electrification economy by integrating electrified energy assets with its AI-driven technology solutions platform. It provides residential and light commercial buildings, and all-electric original equipment manufacturers with a platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. The company was incorporated in 2021 and is headquartered in Marlborough, Massachusetts.
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