Critical Survey: MasTec (NYSE:MTZ) versus SKK (NASDAQ:SKK)

SKK (NASDAQ:SKK) and MasTec (NYSE:MTZ) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

78.1% of MasTec shares are owned by institutional investors. 21.3% of MasTec shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares SKK and MasTec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SKK	N/A	N/A	N/A
MasTec	0.73%	8.27%	2.55%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SKK and MasTec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SKK	0	0	0	0	0.00
MasTec	0	2	11	0	2.85

MasTec has a consensus target price of $150.23, indicating a potential upside of 8.53%. Given MasTec’s stronger consensus rating and higher possible upside, analysts clearly believe MasTec is more favorable than SKK.

Earnings & Valuation

This table compares SKK and MasTec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SKK	$9.76 million	N/A	N/A	N/A	N/A
MasTec	$12.18 billion	0.90	-$49.95 million	$1.12	123.59

SKK has higher earnings, but lower revenue than MasTec.

Summary

MasTec beats SKK on 9 of the 9 factors compared between the two stocks.

About SKK

SKK Holdings Limited, through its subsidiaries, provides civil engineering services in Singapore. It undertakes subsurface utility works, such as power and telecommunication cable laying works, water pipeline works, and sewer rehabilitation works. The company also offers gas pipeline and sewer construction works; and underground piping, underground utility infrastructure construction and maintenance, horizontal directional drilling, and plumbing and sanitary works. It serves government authorities, utility companies, or contractors. The company was founded in 2013 and is headquartered in Singapore.

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.