Critical Review: Primoris Services (NASDAQ:PRIM) versus SKK (NASDAQ:SKK)

SKK (NASDAQ:SKK) and Primoris Services (NASDAQ:PRIM) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

91.8% of Primoris Services shares are owned by institutional investors. 1.4% of Primoris Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for SKK and Primoris Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SKK	0	0	0	0	0.00
Primoris Services	0	1	3	1	3.00

Primoris Services has a consensus price target of $86.00, indicating a potential upside of 8.31%. Given Primoris Services’ stronger consensus rating and higher possible upside, analysts clearly believe Primoris Services is more favorable than SKK.

Valuation & Earnings

This table compares SKK and Primoris Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SKK	N/A	N/A	N/A	N/A	N/A
Primoris Services	$5.72 billion	0.75	$126.14 million	$3.02	26.29

Primoris Services has higher revenue and earnings than SKK.

Profitability

This table compares SKK and Primoris Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SKK	N/A	N/A	N/A
Primoris Services	2.68%	15.23%	4.88%

Summary

Primoris Services beats SKK on 10 of the 10 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 Primoris Services

Primoris Services Corporation, a specialty contractor company, provides a range of specialty construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. The company operates through Utilities and Energy/Renewables segments. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, and petrochemical industries, as well as state departments of transportation. It also offers pipeline construction and maintenance, and storage services; pipeline facility, and integrity services. Primoris Services Corporation was founded in 1960 and is headquartered in Dallas, Texas.