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Argan vs. MYR Group: Which Power Infrastructure Stock Is a Better Buy?
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Key Takeaways
Argan benefits from power, data center and Teledata growth, backed by a strong project pipeline.
MYR Group posted record Q2 revenues of $1.08 billion, driven by strength across T&D and C&I.
AGX's 2027 and 2028 EPS estimates rose, while MYRG's 2026 and 2027 estimates held steady.
The growing need for reliable power and electrical infrastructure is creating a strong backdrop for companies supporting the buildout of energy, grid and mission-critical facilities. Against this backdrop, Argan, Inc. (AGX - Free Report) and MYR Group Inc. (MYRG - Free Report) are positioned to benefit from the ongoing buildout of power infrastructure. Rising electricity demand, electrification, data center development, industrial activity and grid modernization are driving customers to invest in additional energy infrastructure, while the need for reliable, uninterrupted power is increasing the importance of experienced contractors with strong execution capabilities and long-standing customer relationships.
Argan focuses on building power facilities, including natural gas and renewable projects, while also providing industrial and Teledata capabilities across power distribution, information, communications and data networks. MYR Group, meanwhile, serves the transmission and distribution and commercial and industrial markets, with exposure to grid modernization, power infrastructure, data centers and other complex projects. Both companies emphasize reliable execution, operational discipline, quality work and strong customer relationships as they pursue opportunities created by evolving electricity demand and the need to strengthen energy infrastructure.
Let’s dive deep and closely compare the fundamentals of both stocks to determine which one is a better investment now.
The Case for Argan Stock
This Virginia-based engineering and construction company is benefiting from higher activity across its Power, Industrial and Teledata segments. Rising demand for reliable power infrastructure is creating a favorable market for Argan as utilities, manufacturers and data center developers seek additional generation capacity. The company’s pipeline remains strong, supported by electrification, domestic manufacturing, EV adoption and data center construction. Its current Power backlog includes four U.S. gas-fired power plants totaling more than 4.1 gigawatts, providing a solid base for future activity.
The company also expects to add a handful of projects over the next seven to 15 months, with complex combined-cycle natural gas projects likely to form the majority of its near and mid-term backlog. Argan is receiving a significant number of inbound requests and remains selective in pursuing projects that fit its capabilities and execution capacity. At the same time, growing data center construction is expanding opportunities beyond its core Power business, with the Industrial segment working on a $125-million data center project involving the fabrication of thermal expansion and energy storage tanks.
Argan is also building a second fabrication facility in North Carolina to support the data center project and pursue additional demand from the market. The facility could provide a meaningful increase in Industrial revenues once operational, while supporting additional opportunities with existing and new customers. This expansion should increase Argan’s fabrication capacity and provide greater exposure to data center-related infrastructure spending.
Beyond Power and Industrial, the company is expanding its Teledata platform through the acquisition of ValCor Communications. The deal adds installation and repair capabilities for information, communication and data networks, expands Argan’s presence in New England and adds Fortune 500 technology, defense and aerospace customers to its client base. Together with organic growth and potential synergies, ValCor is expected to significantly increase the Teledata revenue run rate, while providing another avenue for diversification and growth.
The Case for MYR Group Stock
This Colorado-based electrical infrastructure contractor is benefiting from steady activity across its Transmission and Distribution (T&D) and Commercial and Industrial (C&I) markets as ongoing infrastructure investment and electrification initiatives support demand. In the second quarter of 2026, MYR Group generated record revenues of $1.08 billion, up 20% year over year, reflecting continued strength across both businesses. The company continues to see opportunities as electricity demand reshapes utility capital investment priorities, while utilities make long-term investments to modernize transmission and distribution infrastructure and address evolving grid reliability requirements.
The company is also benefiting from sustained investment in data centers, grid modernization, power infrastructure and industrial facilities. Its Commercial and Industrial business continues to see healthy bidding activity, with revenues reaching $558 million, up 42% year over year, in the second quarter of 2026. Data center construction remains an important source of activity, while the company is also pursuing opportunities across mission-critical facilities and complex commercial and industrial projects. Meanwhile, T&D revenues increased 4% year over year to $524 million, supported by continued utility infrastructure investment.
MYR Group is further expanding its capabilities and geographic presence through the addition of Valley Electric and Comet Electric. The companies bring diverse project portfolios, strong customer relationships and extensive pre-fabrication capabilities, complementing MYR Group’s existing platform. These opportunities are reflected in the company’s $3.16 billion backlog as of June 30, 2026, up 20% year over year, including $1.27 billion in T&D and $1.89 billion in C&I. Their capabilities and customer bases also provide opportunities to broaden the company’s reach across Commercial and Industrial markets and support a wider range of projects.
Looking ahead, MYR Group remains focused on disciplined project selection, operational execution and maintaining strong customer relationships as investment in electrical infrastructure evolves. The company continues to see opportunities across transmission and distribution, data centers, power infrastructure and industrial markets, while its teams are focused on safe, reliable execution and supporting customers’ evolving needs. With a growing backlog and expanded C&I capabilities, MYR Group has a substantial base of activity to pursue as demand for electrical infrastructure continues to evolve.
Stock Performance & Valuation
As witnessed from the chart below, in the year-to-date period, Argan’s share price has underperformed MYR Group.
Image Source: Zacks Investment Research
Considering valuation, Argan has been trading above MYR Group on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends: AGX vs. MYRG
AGX’s earnings estimates for fiscal 2027 and 2028 have increased over the past 30 days to $13.56 and $17.43 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 39.2% and 28.5%, respectively.
AGX's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MYRG’s 2026 and 2027 earnings has remained unchanged over the past 30 days at $12.43 and $14.03 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 65.1% and 12.9%, respectively.
MYRG’s EPS Trend
Image Source: Zacks Investment Research
Should Investors Choose AGX Stock or MYRG Stock?
Both Argan and MYR Group are positioned to benefit from rising investment in power and electrical infrastructure, driven by growing electricity demand, data center development, electrification and grid modernization. Argan offers greater exposure to power generation and data center-related opportunities, while MYR Group has broader exposure to transmission, distribution and Commercial and Industrial markets.
Argan has growth opportunities across its Power, Industrial and Teledata businesses, while MYR Group benefits from a substantial backlog and healthy bidding activity. However, Argan sports a Zacks Rank #1 (Strong Buy), while MYR Group holds a Zacks Rank #2 (Buy).
Although both stocks offer exposure to the power infrastructure growth cycle, AGX has an edge over MYRG at present. Argan appears to be the better choice for investors seeking exposure to the current power infrastructure growth cycle, supported by its stronger Zacks Rank and diversified growth opportunities.
View the Zacks #1 Rank List
Image: Bigstock
Argan vs. MYR Group: Which Power Infrastructure Stock Is a Better Buy?
Key Takeaways
The growing need for reliable power and electrical infrastructure is creating a strong backdrop for companies supporting the buildout of energy, grid and mission-critical facilities. Against this backdrop, Argan, Inc. (AGX - Free Report) and MYR Group Inc. (MYRG - Free Report) are positioned to benefit from the ongoing buildout of power infrastructure. Rising electricity demand, electrification, data center development, industrial activity and grid modernization are driving customers to invest in additional energy infrastructure, while the need for reliable, uninterrupted power is increasing the importance of experienced contractors with strong execution capabilities and long-standing customer relationships.
Argan focuses on building power facilities, including natural gas and renewable projects, while also providing industrial and Teledata capabilities across power distribution, information, communications and data networks. MYR Group, meanwhile, serves the transmission and distribution and commercial and industrial markets, with exposure to grid modernization, power infrastructure, data centers and other complex projects. Both companies emphasize reliable execution, operational discipline, quality work and strong customer relationships as they pursue opportunities created by evolving electricity demand and the need to strengthen energy infrastructure.
Let’s dive deep and closely compare the fundamentals of both stocks to determine which one is a better investment now.
The Case for Argan Stock
This Virginia-based engineering and construction company is benefiting from higher activity across its Power, Industrial and Teledata segments. Rising demand for reliable power infrastructure is creating a favorable market for Argan as utilities, manufacturers and data center developers seek additional generation capacity. The company’s pipeline remains strong, supported by electrification, domestic manufacturing, EV adoption and data center construction. Its current Power backlog includes four U.S. gas-fired power plants totaling more than 4.1 gigawatts, providing a solid base for future activity.
The company also expects to add a handful of projects over the next seven to 15 months, with complex combined-cycle natural gas projects likely to form the majority of its near and mid-term backlog. Argan is receiving a significant number of inbound requests and remains selective in pursuing projects that fit its capabilities and execution capacity. At the same time, growing data center construction is expanding opportunities beyond its core Power business, with the Industrial segment working on a $125-million data center project involving the fabrication of thermal expansion and energy storage tanks.
Argan is also building a second fabrication facility in North Carolina to support the data center project and pursue additional demand from the market. The facility could provide a meaningful increase in Industrial revenues once operational, while supporting additional opportunities with existing and new customers. This expansion should increase Argan’s fabrication capacity and provide greater exposure to data center-related infrastructure spending.
Beyond Power and Industrial, the company is expanding its Teledata platform through the acquisition of ValCor Communications. The deal adds installation and repair capabilities for information, communication and data networks, expands Argan’s presence in New England and adds Fortune 500 technology, defense and aerospace customers to its client base. Together with organic growth and potential synergies, ValCor is expected to significantly increase the Teledata revenue run rate, while providing another avenue for diversification and growth.
The Case for MYR Group Stock
This Colorado-based electrical infrastructure contractor is benefiting from steady activity across its Transmission and Distribution (T&D) and Commercial and Industrial (C&I) markets as ongoing infrastructure investment and electrification initiatives support demand. In the second quarter of 2026, MYR Group generated record revenues of $1.08 billion, up 20% year over year, reflecting continued strength across both businesses. The company continues to see opportunities as electricity demand reshapes utility capital investment priorities, while utilities make long-term investments to modernize transmission and distribution infrastructure and address evolving grid reliability requirements.
The company is also benefiting from sustained investment in data centers, grid modernization, power infrastructure and industrial facilities. Its Commercial and Industrial business continues to see healthy bidding activity, with revenues reaching $558 million, up 42% year over year, in the second quarter of 2026. Data center construction remains an important source of activity, while the company is also pursuing opportunities across mission-critical facilities and complex commercial and industrial projects. Meanwhile, T&D revenues increased 4% year over year to $524 million, supported by continued utility infrastructure investment.
MYR Group is further expanding its capabilities and geographic presence through the addition of Valley Electric and Comet Electric. The companies bring diverse project portfolios, strong customer relationships and extensive pre-fabrication capabilities, complementing MYR Group’s existing platform. These opportunities are reflected in the company’s $3.16 billion backlog as of June 30, 2026, up 20% year over year, including $1.27 billion in T&D and $1.89 billion in C&I. Their capabilities and customer bases also provide opportunities to broaden the company’s reach across Commercial and Industrial markets and support a wider range of projects.
Looking ahead, MYR Group remains focused on disciplined project selection, operational execution and maintaining strong customer relationships as investment in electrical infrastructure evolves. The company continues to see opportunities across transmission and distribution, data centers, power infrastructure and industrial markets, while its teams are focused on safe, reliable execution and supporting customers’ evolving needs. With a growing backlog and expanded C&I capabilities, MYR Group has a substantial base of activity to pursue as demand for electrical infrastructure continues to evolve.
Stock Performance & Valuation
As witnessed from the chart below, in the year-to-date period, Argan’s share price has underperformed MYR Group.
Image Source: Zacks Investment Research
Considering valuation, Argan has been trading above MYR Group on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends: AGX vs. MYRG
AGX’s earnings estimates for fiscal 2027 and 2028 have increased over the past 30 days to $13.56 and $17.43 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 39.2% and 28.5%, respectively.
AGX's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MYRG’s 2026 and 2027 earnings has remained unchanged over the past 30 days at $12.43 and $14.03 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 65.1% and 12.9%, respectively.
MYRG’s EPS Trend
Image Source: Zacks Investment Research
Should Investors Choose AGX Stock or MYRG Stock?
Both Argan and MYR Group are positioned to benefit from rising investment in power and electrical infrastructure, driven by growing electricity demand, data center development, electrification and grid modernization. Argan offers greater exposure to power generation and data center-related opportunities, while MYR Group has broader exposure to transmission, distribution and Commercial and Industrial markets.
Argan has growth opportunities across its Power, Industrial and Teledata businesses, while MYR Group benefits from a substantial backlog and healthy bidding activity. However, Argan sports a Zacks Rank #1 (Strong Buy), while MYR Group holds a Zacks Rank #2 (Buy).
Although both stocks offer exposure to the power infrastructure growth cycle, AGX has an edge over MYRG at present. Argan appears to be the better choice for investors seeking exposure to the current power infrastructure growth cycle, supported by its stronger Zacks Rank and diversified growth opportunities.
You can see the complete list of today’s Zacks #1 Rank stocks here.