Eiffage (OTCMKTS:EFGSY) and Sterling Infrastructure (NASDAQ:STRL) Critical Analysis

Eiffage (OTCMKTS:EFGSY) and Sterling Infrastructure (NASDAQ:STRL) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Eiffage and Sterling Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eiffage	0	0	1	0	3.00
Sterling Infrastructure	0	1	0	0	2.00

Sterling Infrastructure has a consensus price target of $115.00, suggesting a potential downside of 22.38%. Given Sterling Infrastructure’s higher possible upside, analysts clearly believe Sterling Infrastructure is more favorable than Eiffage.

Valuation and Earnings

This table compares Eiffage and Sterling Infrastructure”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eiffage	N/A	N/A	N/A	$0.60	34.39
Sterling Infrastructure	$2.07 billion	2.21	$138.65 million	$4.81	30.80

Sterling Infrastructure has higher revenue and earnings than Eiffage. Sterling Infrastructure is trading at a lower price-to-earnings ratio than Eiffage, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Eiffage and Sterling Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eiffage	N/A	N/A	N/A
Sterling Infrastructure	7.85%	25.64%	8.95%

Insider and Institutional Ownership

80.9% of Sterling Infrastructure shares are owned by institutional investors. 3.7% of Sterling Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Sterling Infrastructure beats Eiffage on 8 of the 11 factors compared between the two stocks.

About Eiffage

Eiffage SA engages in the construction, property development, urban development, civil engineering, metallic construction, roads, energy systems, and concessions businesses in France and internationally. The company operates through Construction, Infrastructure, Energy Systems, Concessions, and Holding Company segments. The Construction segment offers urban development, building design and construction, property development, and maintenance and facilities management services. The Infrastructure segment is involved in undertaking civil engineering, road and rail design and construction, drainage, earthworks, and metallic construction. The Energy Systems segment designs, constructs, integrates, operates, and maintains energy and telecommunication systems and equipment. The Concessions segment constructs and manages concession contracts and public-private partnerships. The company was founded in 1844 and is based in Vélizy-Villacoublay, France.

About Sterling Infrastructure

Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions primarily in the United States. It operates through three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors. The Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads. The Building Solutions segment provides residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work for developers and general contractors, as well as provides plumbing services for residential builds. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.