Over the past three months, the Construction & Engineering sector has been one of the top growth leaders in the S&P 500 index, up 15%.
The largest (by market capitalization) companies in this industry: Quanta Services ($51.8B) and Jacobs Solutions ($15.5B). They both provide infrastructure consulting services.
According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria according to the methodology of Stanford University professor Joseph Piotroski.
As you can see, in terms of fundamental data, both companies are currently showing quite strong results. Quanta Services outperforms Jacobs Solutions in terms of profitability and efficiency, and Jacobs Solutions outperforms its competitor in terms of sustainability.
Over the past 3 months, Quanta Services shares have increased by +20%, while Jacobs Solutions shares have decreased by -1.3% (the S&P 500 index has decreased by -2.5%). Quanta Services has not only outperformed its closest competitor, but also demonstrated better results compared to the index.
So, the winner in this issue is Quanta Services. Although Jacobs Solutions’ shares are superior in terms of liquidity and funding, Quanta Services looks healthier in terms of change in return on assets and asset turnover, and its shares show better yields.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
