Primoris Services vs. MasTec: Which Construction Stock to Bet on Now?

The robust public infrastructure spending environment is benefiting firms operating in the infrastructure and specialty-construction markets focused on utilities, energy, pipeline and heavy civil projects. Companies like Primoris Services Corporation PRIM and MasTec, Inc. MTZ are a few names that are leveraging the incremental market trends.Besides a favorable funding scenario, the two back-to-back Fed rate cuts are acting as a catalyst in boosting prospects further. After a 0.25 percentage point rate cut on Sept. 17, 2025, the Federal Reserve again pulled down the interest rate by another 25 basis points on Oct. 29, moving the targeted benchmark between 3.75% and 4.00%. With another expected rate cut in December 2025 and two more by June 2026 (per Goldman Sachs chief economist Jan Hatzius), the growth optimism surrounding the economy is in favor of the companies mentioned above.Primoris Services is currently focused on executing cost control initiatives and disciplined capital management amid the favorable market fundamentals. Contrarily, MasTec is considering further boosting the growth prospects witnessed across its Pipeline Infrastructure segment, alongside maintaining meaningful growth in its non-pipeline businesses.Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.The Case for Primoris Services StockThis Texas-based specialty construction and infrastructure company is gaining from solid project execution strategies amid healthy end-market demand, accompanied by its cost control efforts and disciplined capital management. PRIM has been witnessing robust demand trends across the power delivery, gas operations, communications, renewable energy and industrial markets.Moreover, the passing of the One Big Beautiful Bill Act is a cherry on the cake. This act highlights tax incentives like bonus depreciation across infrastructure investments and allocates about $150 billion of mandatory defense spending. This strategic move is in favor of Primoris Services as it has enabled its customers to have a substantial volume of projects lined up for the next few years.Primoris Services’ internal execution remains encouraging despite a challenging macro environment and supportive public spending. Adjusted EPS for the first nine months of 2025 rose 65.7% year over year to $4.54, driven by revenue growth, lower interest expense and reduced SG&A. Confident in its diversified markets and solid fundamentals, the company raised its 2025 adjusted EPS outlook to $5.35-$5.55, up from $4.90-$5.10 and well above the 2024 figure of $3.87.However, PRIM continues to face margin pressures across both operating segments, raising concerns about its ability to sustain profitability despite cost controls and efficiency efforts. Third-quarter 2025 margins contracted 120 basis points to 10.8%, reflecting lower higher-margin storm work, fewer favorable impacts from renewables and industrial projects compared with 2024 and increased costs on certain renewables projects due to adverse weather and project delays.The Case for MasTec StockThis Florida-based infrastructure construction company is benefiting from strong activity across communications, clean energy and power delivery markets. Besides, a record backlog highlighted persistent demand tied to energy transition and infrastructure investment. As of Sept. 30, 2025, the company’s 18-month backlog stood at a record level of $16.78 billion, up 21.1% year over year and 2% sequentially. MasTec offers services for renewables projects through its Clean Energy and Infrastructure segment, whose 18-month backlog grew 21.4% year over year on strong renewables demand, mainly solar.After going through a rough patch since the start of 2025, MasTec’s Pipeline Infrastructure segment’s revenues grew 20% year over year to $597.8 million, with EBITDA margin showing sequential growth of 390 basis points to 15.4%. Increasing multi-year spending across grid reliability, LNG expansion and energy transition infrastructure is driving the momentum. Also, MTZ’s improved bidding discipline, a more favorable mix of midstream projects, better project execution and healthier backlog conversion are boding well amid favorable government funding initiatives.Despite thriving in the energy and power markets, MasTec is facing several challenges that are impacting its revenue visibility and margin growth. It has been experiencing performance setbacks due to fluctuations in capital spending, alongside being continuously subject to project delays.During the third quarter of 2025, MTZ toned down the 2025 revenue guidance for its Power Delivery segment to about $4.075 billion from the prior expected range of $4.225-$4.25 billion. This move was undertaken because of a lower level of activity related to its Greenlink project, as the customer is facing isolated delays due to permitting.Stock Performance & ValuationAs witnessed from the chart below, in the past three months, MasTec’s share price performance has outperformed Primoris Services’ growth and the broader Construction sector.Image Source: Zacks Investment ResearchConsidering valuation, over the last five years, MasTec has been trading above Primoris Services on a forward 12-month price-to-earnings (P/E) ratio basis.Image Source: Zacks Investment ResearchOverall, from these technical indicators, it can be deduced that MTZ stock offers an incremental growth trend but with a premium valuation, while PRIM stock offers a diminishing growth trend with a discounted valuation.Comparing EPS Estimate Trends: PRIM vs. MTZThe Zacks Consensus Estimate for PRIM’s 2025 EPS indicates 31.3% year-over-year growth, with the 2026 estimate indicating an improvement of 9.3%. The 2025 and 2026 EPS estimates have remained stable over the past 60 days.PRIM's EPS TrendImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MTZ’s 2025 earnings implies a year-over-year rise of 60.8%, while the same for 2026 indicates an uptick of 27%. Its 2025 and 2026 EPS estimates have trended upward over the past 30 days by 0.5% and 3.6%, respectively.MTZ's EPS TrendImage Source: Zacks Investment ResearchWhich Stock to Pick Now: PRIM or MTZ?Primoris Services is executing well across diversified end markets, aided by cost controls and strong demand in power delivery, gas operations, communications and renewables. However, persistent margin pressure remains a key concern, due to reduced high-margin storm work, weaker renewables contributions and rising costs tied to weather-related delays.On the other hand, MasTec is capitalizing on record backlog strength and broad momentum across communications, power delivery and clean energy. But the company continues to grapple with project delays, fluctuating customer capital spending and trimmed guidance for its Power Delivery segment due to permitting setbacks.Although MTZ stock is trading at a premium, its growth trajectory appears stronger and consensus estimates are rising compared with PRIM stock, which is at a discounted valuation. Although both stocks are currently carrying a Zacks Rank #3 (Hold), MTZ holds a robust near-term edge on execution momentum and backlog strength, making it a comparatively better investment option over PRIM now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. 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(MTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks