Financial Analysis: Everus (NYSE:ECG) and Taylor Morrison Home (NYSE:TMHC)

Everus (NYSE:ECG) and Taylor Morrison Home (NYSE:TMHC) are both mid-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Everus and Taylor Morrison Home, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everus	0	2	2	0	2.50
Taylor Morrison Home	0	1	7	0	2.88

Everus presently has a consensus target price of $67.67, indicating a potential downside of 3.13%. Taylor Morrison Home has a consensus target price of $85.33, indicating a potential upside of 40.72%. Given Taylor Morrison Home’s stronger consensus rating and higher probable upside, analysts clearly believe Taylor Morrison Home is more favorable than Everus.

Insider and Institutional Ownership

95.2% of Taylor Morrison Home shares are held by institutional investors. 3.5% of Taylor Morrison Home shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Everus and Taylor Morrison Home”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everus	$2.73 billion	1.31	$137.23 million	N/A	N/A
Taylor Morrison Home	$7.83 billion	0.80	$768.93 million	$7.56	8.02

Taylor Morrison Home has higher revenue and earnings than Everus.

Profitability

This table compares Everus and Taylor Morrison Home’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everus	N/A	N/A	N/A
Taylor Morrison Home	10.39%	15.91%	9.73%

Summary

Taylor Morrison Home beats Everus on 10 of the 11 factors compared between the two stocks.

About Everus

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.

About Taylor Morrison Home

Taylor Morrison Home Corporation, together with its subsidiaries, operates as a public homebuilder in the United States. The company designs, builds, and sells single and multi-family detached and attached homes; and develops lifestyle and master-planned communities. It develops and constructs multi-use properties consisting of commercial space, retail, and multi-family properties under the Urban Form brand name. In addition, the company offers financial services, title insurance, and closing settlement services. It operates under the Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade brand names in Arizona, California, Colorado, Florida, Georgia, Nevada, North and South Carolina, Oregon, Texas, and Washington. Taylor Morrison Home Corporation was founded in 1936 and is headquartered in Scottsdale, Arizona.