Analyzing Orion Group (ORN) and Great Lakes Dredge and Dock (GLDD)

Orion Group (NYSE: ORN) and Great Lakes Dredge and Dock (NASDAQ:GLDD) are both small-cap construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

90.1% of Orion Group shares are held by institutional investors. Comparatively, 77.0% of Great Lakes Dredge and Dock shares are held by institutional investors. 8.0% of Orion Group shares are held by insiders. Comparatively, 8.2% of Great Lakes Dredge and Dock shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Orion Group and Great Lakes Dredge and Dock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Group 0.07% -1.74% -0.91%
Great Lakes Dredge and Dock -4.45% -6.64% -1.79%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Orion Group and Great Lakes Dredge and Dock, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Group 0 0 4 0 3.00
Great Lakes Dredge and Dock 0 1 1 0 2.50

Orion Group presently has a consensus target price of $9.75, indicating a potential upside of 37.13%. Great Lakes Dredge and Dock has a consensus target price of $7.00, indicating a potential upside of 57.30%. Given Great Lakes Dredge and Dock’s higher possible upside, analysts clearly believe Great Lakes Dredge and Dock is more favorable than Orion Group.

Volatility and Risk

Orion Group has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Great Lakes Dredge and Dock has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Orion Group and Great Lakes Dredge and Dock’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orion Group $578.55 million 0.35 $400,000.00 ($0.14) -50.79
Great Lakes Dredge and Dock $702.50 million 0.39 -$31.26 million ($0.27) -16.48

Orion Group has higher earnings, but lower revenue than Great Lakes Dredge and Dock. Orion Group is trading at a lower price-to-earnings ratio than Great Lakes Dredge and Dock, indicating that it is currently the more affordable of the two stocks.

Summary

Orion Group beats Great Lakes Dredge and Dock on 9 of the 13 factors compared between the two stocks.

Orion Group Company Profile

Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the continental United States, Alaska, Canada, and the Caribbean Basin. It operates in two segments, Marine and Concrete. The company's marine construction services include construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility projects comprise public port facilities for container ship loading and unloading; cruise ship port facilities; private terminals; special-use navy terminals; recreational use marinas and docks; and other marine-based facilities. The company's marine pipeline service projects consist of the installation and removal of underwater buried pipeline transmission lines; installation of pipeline intakes and outfalls for industrial facilities; construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; creation of hot taps and tie-ins; and inspection, maintenance, and repair services. Its bridge and causeway projects include the construction, repair, and maintenance of overwater bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structures used for erosion control, wetlands creation, and environmental remediation. The company also offers specialty services, such as design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair services. In addition, it provides light commercial, structural, and other concrete construction services. The company was formerly known as Orion Marine Group, Inc. and changed its name to Orion Group Holdings, Inc. in May 2016. Orion Group Holdings, Inc. was founded in 1994 and is headquartered in Houston, Texas.

Great Lakes Dredge and Dock Company Profile

Great Lakes Dredge & Dock Corporation provides dredging services in the United States and internationally. It operates through two segments, Dredging, and Environmental & Infrastructure. The Dredging segment is involved in capital dredging that consists of port expansion projects, coastal restoration and land reclamations, trench digging for pipelines, tunnels and cables, and other dredging related to the construction of breakwaters, jetties, canals, and other marine structures. This segment also engages in channel deepening and port infrastructure development; coastal protection projects; re-dredging previously deepened waterways and harbors; and lake and river dredging, inland levee and construction dredging, environmental restoration and habitat improvement, and other marine construction projects. It serves federal, state, and local governments; foreign governments; and domestic and foreign private concerns, such as utilities, oil, and other energy companies. The Environmental & Infrastructure segment provides environmental and geotechnical construction services, including the creation, repair, or stabilization of environmental barriers; and remediation services comprising the containment, immobilization, or removal of contamination from an environment. It serves general contractors, corporations, superfund potentially responsible parties, and environmental engineering and construction firms, as well as federal and municipal government agencies. The company operates a fleet of 20 dredges, 16 material transportation barges, 1 drillboat, and various other support vessels. The company was formerly known as Lydon & Drews Partnership and changed its name to Great Lakes Dredge & Dock Corporation in 1905. Great Lakes Dredge & Dock Corporation was founded in 1890 and is headquartered in Oak Brook, Illinois.

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