Quanta Services, Inc. (PWR) and Comfort Systems USA, Inc. (FIX) are two prominent players in the Engineering & Construction sector, both headquartered in Houston and specializing in critical infrastructure services. While Quanta focuses heavily on electric power and renewable energy infrastructure, Comfort Systems excels in mechanical and electrical building services. This comparison will explore their market strategies and innovation paths to help you identify which company holds greater promise for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Quanta Services and Comfort Systems USA by providing an overview of these two companies and their main differences.
Quanta Services Overview
Quanta Services, Inc. specializes in specialty contracting services with a focus on electric power infrastructure, renewable energy, and underground utility solutions. The company engages in design, construction, maintenance, and repair of power transmission, distribution, substations, and renewable facilities globally. Headquartered in Houston, Texas, Quanta serves various sectors including electric power, communications, and natural gas, employing 58,400 people.
Comfort Systems USA Overview
Comfort Systems USA, Inc. operates in the mechanical and electrical services industry, providing installation, renovation, maintenance, and repair services primarily in the US. Its offerings include HVAC, plumbing, electrical, and fire protection systems, targeting commercial, industrial, and institutional markets. Founded in 1917 and based in Houston, Texas, Comfort Systems employs 18,300 people and serves building owners, contractors, and property managers.
Key similarities and differences
Both companies operate in the engineering and construction industry with headquarters in Houston and focus on infrastructure services. Quanta Services emphasizes electric power and renewable energy infrastructure on a global scale, while Comfort Systems targets mechanical and electrical systems mainly in US buildings. Quanta’s workforce is significantly larger, and it covers a broader range of utility and energy sectors compared to Comfort Systems’ specialization in building MEP systems.
Income Statement Comparison
This table presents the key income statement metrics for Quanta Services, Inc. and Comfort Systems USA, Inc. for the fiscal year 2024, enabling a straightforward financial comparison.
| Metric | Quanta Services, Inc. (PWR) | Comfort Systems USA, Inc. (FIX) |
|---|---|---|
| Market Cap | 61.3B | 34.3B |
| Revenue | 23.7B | 7.0B |
| EBITDA | 2.16B | 817M |
| EBIT | 1.41B | 672M |
| Net Income | 905M | 522M |
| EPS | 6.16 | 14.64 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Quanta Services, Inc.
Quanta Services, Inc. showed consistent revenue growth from 11.2B in 2020 to 23.7B in 2024, with net income rising from 446M to 905M over the same period. Margins remained mostly stable; gross margin was neutral at 13.21% in 2024, with a slight decline in net margin growth overall. The latest year saw favorable revenue and profit growth, though operating expenses rose proportionally.
Comfort Systems USA, Inc.
Comfort Systems USA, Inc. experienced strong revenue growth from 2.9B in 2020 to 7.0B in 2024, with net income more than tripling from 150M to 522M. Gross and net margins improved notably, with a favorable gross margin of 21.01% and net margin of 7.43% in 2024. The recent year delivered robust increases in revenues, profit margins, and earnings per share, reflecting accelerating operational performance.
Which one has the stronger fundamentals?
Comfort Systems USA, Inc. demonstrates stronger fundamentals with higher margin improvements, greater net income growth (248% overall), and a larger share of favorable income statement indicators (93%). Quanta Services, while showing solid revenue increases and positive EPS growth, has a more modest margin profile and some unfavorable net margin trends, indicating comparatively less pronounced fundamental strength.
Financial Ratios Comparison
This table presents a side-by-side comparison of key financial ratios for Quanta Services, Inc. (PWR) and Comfort Systems USA, Inc. (FIX) based on their most recent fiscal year data ending 2024.
| Ratios | Quanta Services, Inc. (PWR) | Comfort Systems USA, Inc. (FIX) |
|---|---|---|
| ROE | 12.36% | 30.65% |
| ROIC | 7.99% | 27.16% |
| P/E | 51.32 | 28.97 |
| P/B | 6.35 | 8.88 |
| Current Ratio | 1.30 | 1.08 |
| Quick Ratio | 1.26 | 1.06 |
| D/E (Debt to Equity) | 0.61 | 0.18 |
| Debt-to-Assets | 23.97% | 6.55% |
| Interest Coverage | 6.60 | 112.72 |
| Asset Turnover | 1.27 | 1.49 |
| Fixed Asset Turnover | 7.89 | 13.88 |
| Payout Ratio | 6.0% | 8.2% |
| Dividend Yield | 0.12% | 0.28% |
Interpretation of the Ratios
Quanta Services, Inc.
Quanta Services shows a mixed ratio profile with favorable metrics in quick ratio, debt to assets, interest coverage, and asset turnover, but unfavorable net margin, price-to-earnings, price-to-book, and dividend yield. The company’s dividend yield is low at 0.12%, indicating limited returns to shareholders through dividends despite consistent payouts, suggesting cautious distribution aligned with cash flow.
Comfort Systems USA, Inc.
Comfort Systems USA demonstrates strong profitability ratios, including a high return on equity (30.65%) and return on invested capital (27.16%), supported by excellent interest coverage and low debt to equity. Its dividend yield of 0.28% remains modest, reflecting a balanced approach to shareholder returns with sustainable payouts and healthy free cash flow coverage.
Which one has the best ratios?
Comfort Systems USA holds an overall favorable ratio profile, with a stronger profitability and capital structure compared to Quanta Services, whose ratios are slightly favorable but show concerns in valuation and dividend yield. Comfort Systems’ superior returns and lower leverage present a more robust financial stance in this comparison.
Strategic Positioning
This section compares the strategic positioning of Quanta Services, Inc. and Comfort Systems USA, Inc., including market position, key segments, and exposure to technological disruption:
Quanta Services, Inc.
- Large market cap at 61.3B, facing industrial competitive pressures in engineering and construction.
- Diversified across Electric Power Infrastructure, Renewable Energy, and Underground Utility segments.
- Engaged in smart grid tech and renewable energy infrastructure, indicating moderate exposure to tech disruption.
Comfort Systems USA, Inc.
- Mid-sized market cap at 34.3B, operating in a competitive mechanical and electrical services industry.
- Focused on Mechanical and Electrical segments servicing commercial and industrial MEP markets.
- Provides remote monitoring and building automation, showing some exposure to technology advancements.
Quanta Services, Inc. vs Comfort Systems USA, Inc. Positioning
Quanta Services pursues a diversified strategy across multiple infrastructure sectors, offering broad exposure but also complexity. Comfort Systems concentrates on mechanical and electrical services with specific building system technologies, providing focused expertise but narrower market coverage.
Which has the best competitive advantage?
Based on MOAT evaluation, Comfort Systems USA shows a very favorable competitive advantage with growing ROIC and value creation. Quanta Services is currently shedding value with stable but unfavorable profitability, indicating weaker competitive positioning.
Stock Comparison
The past year saw strong bullish trends for both Quanta Services, Inc. (PWR) and Comfort Systems USA, Inc. (FIX), with PWR appreciating around 95% and FIX surging nearly 291%, despite recent short-term fluctuations in their stock prices.
Trend Analysis
Quanta Services, Inc. (PWR) experienced a bullish trend over the past 12 months with a 95.41% price increase, though the trend shows deceleration and recent minor negative movement of -6.3% since late October 2025. Comfort Systems USA, Inc. (FIX) posted a stronger bullish trend with a 290.94% gain over the past year, also decelerating, and a slight recent decrease of -1.04% accompanied by a mild upward slope.
Comparing both stocks, Comfort Systems USA (FIX) delivered the highest market performance with a 290.94% gain versus Quanta Services (PWR) at 95.41% over the past year.
Target Prices
Analysts present a clear consensus on target prices for Quanta Services, Inc. and Comfort Systems USA, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Quanta Services, Inc. | 540 | 415 | 486.7 |
| Comfort Systems USA, Inc. | 1200 | 1069 | 1136.33 |
The target consensus for Quanta Services at 486.7 suggests upside potential from the current price of 413.17. Comfort Systems USA’s consensus of 1136.33 also indicates significant expected appreciation from its current 971.49 price.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Quanta Services, Inc. (PWR) and Comfort Systems USA, Inc. (FIX):
Rating Comparison
PWR Rating
- Rating: B-, considered very favorable overall.
- Discounted Cash Flow Score: 3, indicating a moderate valuation outlook.
- ROE Score: 4, a favorable measure of profit generation efficiency.
- ROA Score: 3, showing moderate asset utilization effectiveness.
- Debt To Equity Score: 2, suggesting moderate financial risk from leverage.
- Overall Score: 2, reflecting a moderate overall financial standing.
FIX Rating
- Rating: B+, considered very favorable overall.
- Discounted Cash Flow Score: 3, indicating a moderate valuation outlook.
- ROE Score: 5, a very favorable indicator of profit efficiency from equity.
- ROA Score: 5, showing very favorable asset utilization performance.
- Debt To Equity Score: 3, suggesting moderate financial risk from leverage.
- Overall Score: 3, reflecting a moderate but higher overall financial standing.
Which one is the best rated?
Based on the provided data, FIX holds a higher rating (B+) and superior scores in ROE, ROA, and overall measures compared to PWR’s B- rating and generally moderate scores. FIX is the better rated company strictly by these metrics.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for the two companies:
PWR Scores
- Altman Z-Score: 4.7, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 6, reflecting average financial strength.
FIX Scores
- Altman Z-Score: 8.4, also in the safe zone, showing very low bankruptcy risk.
- Piotroski Score: 8, indicating very strong financial health and value potential.
Which company has the best scores?
Based strictly on the provided scores, FIX has both a higher Altman Z-Score and a stronger Piotroski Score than PWR, indicating better financial health and lower bankruptcy risk.
Grades Comparison
Here is a comparison of the recent grades assigned to Quanta Services, Inc. and Comfort Systems USA, Inc.:
Quanta Services, Inc. Grades
The table below summarizes recent grades from reputable grading companies for Quanta Services, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Bernstein | Maintain | Market Perform | 2025-12-19 |
| JP Morgan | Upgrade | Overweight | 2025-12-08 |
| Jefferies | Maintain | Buy | 2025-11-03 |
| Citigroup | Maintain | Buy | 2025-10-31 |
| JP Morgan | Maintain | Neutral | 2025-10-31 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-31 |
| Citigroup | Maintain | Buy | 2025-10-20 |
| JP Morgan | Maintain | Neutral | 2025-10-16 |
| Stifel | Maintain | Buy | 2025-10-09 |
| Truist Securities | Maintain | Buy | 2025-10-08 |
Quanta Services, Inc. mostly received Buy and Outperform grades, with occasional Neutral and Market Perform ratings, indicating overall positive analyst sentiment.
Comfort Systems USA, Inc. Grades
The table below presents recent grades from recognized grading firms for Comfort Systems USA, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Buy | 2025-12-19 |
| Stifel | Maintain | Buy | 2025-12-16 |
| UBS | Maintain | Buy | 2025-10-27 |
| Stifel | Maintain | Buy | 2025-10-13 |
| UBS | Maintain | Buy | 2025-09-15 |
| DA Davidson | Maintain | Buy | 2025-07-28 |
| UBS | Maintain | Buy | 2025-07-25 |
| Stifel | Maintain | Buy | 2025-07-11 |
| DA Davidson | Maintain | Buy | 2025-06-30 |
| Stifel | Maintain | Buy | 2025-05-23 |
Comfort Systems USA, Inc. consistently received Buy ratings from multiple reputable firms, showing stable and positive analyst confidence.
Which company has the best grades?
Quanta Services, Inc. holds a consensus Buy with a mix of Buy, Outperform, and Neutral grades, while Comfort Systems USA, Inc. has a consensus Hold despite predominantly Buy ratings. Investors may interpret Quanta’s higher consensus and varied positive ratings as slightly stronger analyst endorsement compared to Comfort Systems USA.
Strengths and Weaknesses
The following table summarizes key strengths and weaknesses for Quanta Services, Inc. (PWR) and Comfort Systems USA, Inc. (FIX) based on their recent financial performance and market position.
| Criterion | Quanta Services, Inc. (PWR) | Comfort Systems USA, Inc. (FIX) |
|---|---|---|
| Diversification | Strong in Electric Power Infrastructure and growing Renewable Energy segment ($11.2B total 2024 revenue) | Balanced between Electrical and Mechanical segments ($7.0B total 2024 revenue) |
| Profitability | Margins and ROIC are neutral to unfavorable; ROIC below WACC indicates value destruction | High ROIC (27.16%) and growing profitability; strong ROE (30.65%) |
| Innovation | Moderate innovation focused on renewable solutions growth | Strong operational efficiency indicated by asset turnover and interest coverage |
| Global presence | Primarily U.S.-focused with infrastructure specialization | U.S.-based with broad mechanical and electrical services coverage |
| Market Share | Large in power infrastructure but facing profitability pressure | Competitive in HVAC and electrical services with durable moat |
In summary, Comfort Systems USA (FIX) shows a very favorable economic moat with strong profitability growth and operational efficiency, making it a more attractive investment. Quanta Services (PWR), while diversified and growing in renewables, currently struggles with profitability and value creation, warranting cautious evaluation.
Risk Analysis
Below is a comparison of key risks for Quanta Services, Inc. (PWR) and Comfort Systems USA, Inc. (FIX) based on the most recent 2024 data:
| Metric | Quanta Services, Inc. (PWR) | Comfort Systems USA, Inc. (FIX) |
|---|---|---|
| Market Risk | Beta 1.16; moderate volatility with recent price decline (-5.4%) | Beta 1.66; higher volatility and recent price drop (-6.1%) |
| Debt Level | Debt-to-Equity 0.61; moderate leverage, interest coverage 6.98 | Debt-to-Equity 0.18; low leverage, strong interest coverage 101.02 |
| Regulatory Risk | Exposure to infrastructure and energy regulations in US | Subject to building codes and environmental regulations in US |
| Operational Risk | Large workforce (58.4K); complexity in multi-segment operations | Smaller workforce (18.3K); focus on MEP systems with well-defined segments |
| Environmental Risk | Moderate due to involvement in renewable and fossil fuel infrastructure | Moderate, with HVAC and plumbing services that impact energy consumption |
| Geopolitical Risk | Limited; primarily US-focused but affected by energy policy shifts | Limited; mostly domestic US operations with exposure to construction cycles |
Synthesis: Market risk is more pronounced for FIX due to higher beta and volatility. PWR’s moderate debt and operational complexity pose manageable risks, while FIX’s low debt and strong interest coverage reduce financial risk. Regulatory changes in energy and construction sectors remain key external risks. Both companies are in safe zones regarding bankruptcy risk, but investor caution is advised due to sector cyclicality and market fluctuations.
Which Stock to Choose?
Quanta Services, Inc. (PWR) has shown favorable income growth with a 111% revenue increase over five years and improvements in profitability metrics, though net margin remains neutral. Its financial ratios are slightly favorable overall, with solid liquidity and manageable debt, but valuation multiples are high. The company’s rating is very favorable (B-), supported by moderate to favorable scores, yet it shows an unfavorable MOAT due to ROIC below WACC, indicating value destruction.
Comfort Systems USA, Inc. (FIX) exhibits strong income growth with a 146% revenue rise and notably favorable profitability and margin improvements. Its financial ratios are predominantly favorable, reflecting strong returns and low leverage, despite elevated valuation multiples. FIX holds a very favorable rating (B+) with strong scores and a very favorable MOAT, as its ROIC significantly exceeds WACC, signaling durable competitive advantage and value creation.
For investors prioritizing growth and strong profitability, FIX’s robust income evolution, favorable financial ratios, and very favorable MOAT might appear more aligned with such profiles. Conversely, those focused on companies with stable but moderate financial health could interpret PWR’s slightly favorable ratios and very favorable rating as indicative of potential, albeit with caution due to its value-destructive MOAT.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Quanta Services, Inc. and Comfort Systems USA, Inc. to enhance your investment decisions:
