TPC vs PRIM
TPC has 40% the market cap of PRIM. Both companies are doing well for the Infrastructure Bill. TPC looks to have analysts expecting 80% growth in 2025 vs 2024 vs 20% for PRIM. The question is, what should the valuation be. For TPC, in which $1.50 eps is expected in 2025 ? the stock is selling for a 12 going forward. For PRIM, analysts expect $3.28 eps for 2025, so a 14 PE going forward. In addition, backlog for TPC as of Dec 31,2023 grew 26% vs 20% for PRIM. Lastly PRIM pays a dividend, and TPC doesn't.
However, the big question is, if you think the Infrastructure Bill(to last till Dec 31, 2026) will continue to benefit roads and bridges stocks for the next couple years, which company has more upside potential % wise. At first glance is surely appears like TPC is the winner. However one would have to look at the PEs for both TPC and PRIM over a long period of time to see which one garners the higher PE in general. Also PRIM is over twice as large on a market cap basis, so that might mean something. Lastly PRIM does pay a dividend, all though only around .5%. Hard to know for sure, but with the stronger earnings growth of TPC vs PRIM, yet a lower PE, it seems it would TPC, even after the unreal run it's had over the last year, may still have more potential % upside vs PRIM. However important to note is, analysts only have a $15 average price target on TPC, while PRIM a $55 target. I suspect though that the price target for TPC will go up after the latest qtr that only came out a day ago(analysts have not upgraded yet).
