Contrasting Matrix Service (NASDAQ:MTRX) and Taisei (OTCMKTS:TISCY)

Taisei (OTCMKTS:TISCY) and Matrix Service (NASDAQ:MTRX) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Institutional and Insider Ownership

78.4% of Matrix Service shares are owned by institutional investors. 3.7% of Matrix Service 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Taisei and Matrix Service, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taisei	0	0	0	0	N/A
Matrix Service	0	0	1	0	3.00

Matrix Service has a consensus target price of $15.00, suggesting a potential upside of 29.53%. Given Matrix Service’s higher probable upside, analysts clearly believe Matrix Service is more favorable than Taisei.

Profitability

This table compares Taisei and Matrix Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taisei	N/A	N/A	N/A
Matrix Service	-2.49%	-12.50%	-5.57%

Valuation & Earnings

This table compares Taisei and Matrix Service’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taisei	N/A	N/A	N/A	$278.84	0.03
Matrix Service	$795.02 million	0.40	-$52.36 million	($0.70)	-16.54

Taisei has higher earnings, but lower revenue than Matrix Service. Matrix Service is trading at a lower price-to-earnings ratio than Taisei, indicating that it is currently the more affordable of the two stocks.

About Taisei

Taisei Corporation engages in the civil engineering, construction, and real estate development businesses in Japan. The company constructs offices, commercial facilities, factories, schools, hospitals, tunnels, bridges, dams, railways, expressways, etc.; and engineers production facilities and development facilities for pharmaceutical and logistics fields. It also involved in the redevelopment, public-private partnership/private finance initiative, property management, in-house development, and condominium sales projects. The company was formerly known as Nippon Doboku Corporation and changed its name to Taisei Corporation in 1946. Taisei Corporation was founded in 1873 and is headquartered in Tokyo, Japan.

About Matrix Service

Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.