Over the past three months, one of the growth leaders in the S&P 500 index was the Construction & Engineering industry +18.8%.
The largest companies in this industry (by market capitalization): Quanta Services ($44.8B) and Jacobs Solutions ($17.3B). 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. Jacobs Solutions outperforms Quanta Services in terms of stability, and Quanta Services outperforms in terms of profitability.
Over the past 3 months, Quanta Services shares have risen by +20.2%, and Jacobs Solutions by +15.3% (the S&P 500 index has risen by +6.2%). 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 outperformed in terms of funding, Quanta Services’ business outperformed in terms of change in return on assets, and its shares also showed 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.
