Southland (NASDAQ:SLND – Get Rating) and Construction Partners (NASDAQ:ROAD – Get Rating) are both small-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Institutional & Insider Ownership
75.9% of Construction Partners shares are owned by institutional investors. 23.5% of Construction Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Southland 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 | |
| Southland | N/A | N/A | N/A | N/A | N/A |
| Construction Partners | $1.30 billion | 1.00 | $21.38 million | $0.34 | 72.80 |
Profitability
This table compares Southland and Construction Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southland | N/A | N/A | N/A |
| Construction Partners | 1.31% | 4.03% | 1.70% |
Analyst Recommendations
This is a summary of current ratings and target prices for Southland and Construction Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southland | 0 | 0 | 1 | 0 | 3.00 |
| Construction Partners | 0 | 1 | 3 | 1 | 3.00 |
Southland currently has a consensus target price of $14.00, suggesting a potential upside of 67.06%. Construction Partners has a consensus target price of $32.25, suggesting a potential upside of 30.30%. Given Southland’s higher probable upside, equities analysts clearly believe Southland is more favorable than Construction Partners.
Summary
Construction Partners beats Southland on 8 of the 9 factors compared between the two stocks.
About Southland
Southland Holdings Inc. is a provider of specialized infrastructure construction services principally in North America including bridges, tunneling, transportation and facilities, marine, steel structures, water and wastewater treatment and water pipeline end markets. Southland Holdings Inc. is headquartered in Grapevine, Texas.
About Construction Partners
Construction Partners, Inc. is a civil infrastructure company, which engages in construction and maintenance of roadways and highways. The firm is also involved in the provision of products and services to both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports, and commercial and residential developments. The company was founded by Ned N. Fleming, III, R. Alan Palmer, and Charles E. Owens in 1999 and is headquartered in Dothan, AL.
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