Comfort Systems USA (NYSE:FIX) vs. Mestek (OTCMKTS:MCCK) Financial Review

Comfort Systems USA (NYSE:FIX) and Mestek (OTCMKTS:MCCK) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Comfort Systems USA and Mestek, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comfort Systems USA	0	0	5	0	3.00
Mestek	0	0	0	0	0.00

Comfort Systems USA presently has a consensus price target of $558.80, indicating a potential upside of 5.47%. Given Comfort Systems USA’s stronger consensus rating and higher possible upside, research analysts clearly believe Comfort Systems USA is more favorable than Mestek.

Volatility and Risk

Comfort Systems USA has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Mestek has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Profitability

This table compares Comfort Systems USA and Mestek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comfort Systems USA	8.13%	36.35%	13.30%
Mestek	20.17%	N/A	N/A

Earnings and Valuation

This table compares Comfort Systems USA and Mestek”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comfort Systems USA	$7.03 billion	2.66	$522.43 million	$16.67	31.78
Mestek	$398.17 million	0.82	$59.39 million	$10.72	4.03

Comfort Systems USA has higher revenue and earnings than Mestek. Mestek is trading at a lower price-to-earnings ratio than Comfort Systems USA, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

96.5% of Comfort Systems USA shares are owned by institutional investors. Comparatively, 0.4% of Mestek shares are owned by institutional investors. 1.6% of Comfort Systems USA shares are owned by company insiders. Comparatively, 65.2% of Mestek shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Comfort Systems USA beats Mestek on 12 of the 14 factors compared between the two stocks.

About Comfort Systems USA

Comfort Systems USA, Inc., together with its subsidiaries, provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It operates through two segments, Mechanical and Electrical. The company offers heating, ventilation, and air conditioning systems, as well as plumbing, electrical, piping and controls, off-site construction, monitoring, and fire protection. It also engages in the design, engineering, integration, installation, and start-up of mechanical, electrical, and plumbing (MEP) and related systems in new buildings; and renovation, expansion, maintenance, monitoring, repair, and replacement of MEP systems in existing buildings. In addition, the company provides remote monitoring of power usage, temperature, pressure, humidity and air flow for MEP and other building systems. It serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional MEP markets. Comfort Systems USA, Inc. was founded in 1917 and is headquartered in Houston, Texas.

About Mestek

Mestek, Inc., together with its subsidiaries, manufactures and sells heating, ventilating, and air conditioning products and equipment; and metal forming equipment in the United States and internationally. The company offers equipment for heating, ventilation, and air conditioning primarily under the Lockformer, lowaPrecision, Engel, and Lion brands; roll forming and flexible fabrication equipment; metal stamping products, including uncoilers, straighteners, press feeds, and dies; and coil metal processing products, including cut-to-length, multi-blanking, and coil slitting and precision corrective levelers. It also provides a range of aftermarket services, such as OEM replacement parts for existing and used equipment, and on-site service support and training services. In addition, it engages in equipment rebuilding and electrical installation works; and tube and pipe production and fabrication. Further, the company offers custom metal-framed skylights, canopies, curtain walls, covered walkways, rain screens/wall-cladding, structural glass/point fixed glass, and ornamental metal products. Additionally, it provides operable and fixed solar shading louver systems; and architectural louvers, grilles, vision screens, penthouses, and brise soleil fixed sunshades. Mestek, Inc. was founded in 1898 and is based in Westfield, Massachusetts.