Comparing Ferrovial (NASDAQ:FER) and Sterling Infrastructure (NASDAQ:STRL)

Ferrovial (NASDAQ:FER) and Sterling Infrastructure (NASDAQ:STRL) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ferrovial and Sterling Infrastructure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrovial	0	0	1	0	3.00
Sterling Infrastructure	0	1	0	0	2.00

Ferrovial presently has a consensus target price of $48.00, suggesting a potential upside of 24.58%. Sterling Infrastructure has a consensus target price of $115.00, suggesting a potential upside of 12.13%. Given Ferrovial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ferrovial is more favorable than Sterling Infrastructure.

Profitability

This table compares Ferrovial and Sterling Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrovial	N/A	N/A	N/A
Sterling Infrastructure	7.47%	25.06%	8.75%

Valuation & Earnings

This table compares Ferrovial and Sterling Infrastructure’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrovial	$8.84 billion	3.23	N/A	N/A	N/A
Sterling Infrastructure	$2.01 billion	1.58	$138.65 million	$4.81	21.32

Sterling Infrastructure has lower revenue, but higher earnings than Ferrovial.

Institutional and Insider Ownership

80.9% of Sterling Infrastructure shares are held by institutional investors. 3.7% of Sterling Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

About Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.

About Sterling Infrastructure

Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions primarily in the United States. It operates through three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors. The Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads. The Building Solutions segment provides residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work for developers and general contractors, as well as provides plumbing services for residential builds. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.