Critical Analysis: Ferrovial (NASDAQ:FER) and Construction Partners (NASDAQ:ROAD)

Ferrovial (NASDAQ:FER) and Construction Partners (NASDAQ:ROAD) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Valuation & Earnings

This table compares Ferrovial and Construction Partners’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrovial	N/A	N/A	N/A	N/A	N/A
Construction Partners	$1.56 billion	2.12	$49.00 million	$1.17	53.84

Construction Partners has higher revenue and earnings than Ferrovial.

Profitability

This table compares Ferrovial and Construction Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrovial	N/A	N/A	N/A
Construction Partners	3.68%	12.00%	4.91%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ferrovial and Construction Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrovial	0	0	1	0	3.00
Construction Partners	0	2	1	1	2.75

Ferrovial presently has a consensus price target of $48.00, indicating a potential upside of 15.83%. Construction Partners has a consensus price target of $54.00, indicating a potential downside of 14.46%. Given Ferrovial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ferrovial is more favorable than Construction Partners.

Insider & Institutional Ownership

94.8% of Construction Partners shares are held by institutional investors. 18.8% of Construction Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Construction Partners beats Ferrovial on 7 of the 9 factors compared between the two stocks.

About Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.

About Construction Partners

Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2007 and is headquartered in Dothan, Alabama.