The accelerating build-out of U.S. energy infrastructure is creating a favorable backdrop for companies involved in power generation, transmission and distribution. Growing electricity demand from data centers, electrification, grid modernization and industrial expansion continues to support a robust project pipeline, while utilities and developers increasingly prioritize reliable, mission-critical electrical infrastructure. Argan, Inc. AGX and MYR Group Inc. MYRG are among the key beneficiaries of these long-term investment trends.
Argan specializes in engineering, procurement and construction services for power generation facilities, while MYR Group focuses on electric transmission, distribution and commercial electrical infrastructure. Both companies continue to emphasize execution excellence, disciplined project selection and bidding, long-term customer relationships, quality, safety and reliable project delivery as they capitalize on sustained investment across the evolving U.S. energy infrastructure landscape. Despite operating across different parts of the power value chain, both are well positioned to benefit from growing infrastructure investment and rising electricity demand.
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 Argan Stock
This Virginia-based engineering and construction company is benefiting from rising investment in U.S. power infrastructure as electricity demand accelerates due to electrification, domestic manufacturing, electric vehicle adoption and expanding data center development. These trends are increasing the need for reliable power generation, creating a favorable backdrop for the company. In the first quarter of fiscal 2027, backlog increased 49.1% year over year to $2.8 billion, providing strong revenue visibility and reflecting healthy customer demand across the business.
Power generation remains the company's primary growth driver. In the first quarter of fiscal 2027, the Power segment generated $227 million in revenues, representing 78% of consolidated revenues, while the segment backlog totaled $2.5 billion. Growing demand for reliable generation capacity, together with meaningful exposure to natural gas-fired projects, strengthens the company's position as utilities and developers expand energy infrastructure to meet rising electricity needs.
Growing investment in data centers is also creating opportunities beyond traditional power construction. The company is executing a major data center-related fabrication project and expanding its fabrication capacity in North Carolina to support customer demand. This investment broadens the Industrial segment's growth prospects while increasing exposure to mission-critical infrastructure spending.
Healthy demand across the U.S. energy infrastructure market continues to support the company's growth outlook. The expectation of securing a handful of new projects over the next 10-18 months, coupled with disciplined project selection and strong execution capabilities, reinforces long-term revenue visibility and strengthens Argan's competitive position.
The Case for MYR Group Stock
This Colorado-based electrical infrastructure contractor is benefiting from rising investment in transmission, distribution and mission-critical electrical infrastructure as utilities modernize the grid and electricity demand continues to increase. Expanding data center development, electrification and long-term utility capital spending are supporting healthy bidding activity across the company's end markets. As of March 31, 2026, MYR Group reported a record backlog of $2.84 billion, up 8% year over year, providing solid visibility into future project activity.
Long-standing customer relationships remain a key competitive advantage as the company continues securing transmission, substation, distribution and commercial electrical projects across the United States and Canada. Data centers, water and wastewater infrastructure, together with ongoing grid modernization, are driving demand for specialized electrical construction services, supporting a diverse pipeline of mission-critical projects.
Project timing, subcontractor activity and material deliveries can create variability in quarterly results, while higher capital expenditures are expected as the company invests in its transmission and distribution operations to support growth. Competitive bidding across large infrastructure projects also reinforces the need to remain selective when pursuing new work.
A record backlog, sustained bidding activity and continued investment across grid infrastructure position the company to benefit from long-term demand for electrical construction services. Combined with established customer relationships and broad exposure to transmission, distribution and mission-critical infrastructure projects, MYR Group appears well positioned to capitalize on the ongoing expansion of North America's power infrastructure.
AGX Outpaces MYRG in Stock Performance
Both Argan and MYR Group have generated strong gains over the past year, benefiting from favorable trends across the U.S. power infrastructure market. However, Argan has delivered a stronger share price performance, with the stock rising 166.3%, compared with 105.4% for MYR Group, indicating relatively stronger investor sentiment toward the stock during the period.
AGX vs. MYRG Past Year Price Performance
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Considering valuation, Argan is trading above MYR Group on a forward 12-month price-to-earnings (P/E) ratio basis.
AGX vs. MYRG Valuation (P/E F12M)
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Comparing EPS Estimate Trends: AGX vs. MYRG
The Zacks Consensus Estimate for AGX's fiscal 2027 and 2028 earnings has increased 10.1% and 4.5%, respectively, over the past 60 days to $12.60 and $16.66 per share. The revised estimates imply year-over-year earnings growth of 29.4% for fiscal 2027 and 32.2% for fiscal 2028.
AGX's EPS Trend
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The Zacks Consensus Estimate for MYRG's 2026 and 2027 earnings has increased 1.3% and 4.6%, respectively, over the past 60 days to $11.43 and $12.48 per share. The revised estimates for 2026 and 2027 imply year-over-year earnings growth of 51.8% and 9.2%, respectively.
MYRG’s EPS Trend
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AGX or MYRG: Which Stock Stands Out?
Argan and MYR Group are both well positioned to benefit from rising investment across the U.S. power infrastructure market, supported by growing electricity demand, grid modernization and expanding data center development. Argan stands out with a faster-growing backlog, greater exposure to large-scale power generation projects and a robust pipeline of future opportunities. MYR Group also maintains a favorable long-term outlook, backed by record backlog, healthy bidding activity and strong positioning across transmission, distribution and mission-critical electrical infrastructure, although project timing and continued investment spending could create near-term variability.
With Argan sporting a Zacks Rank #1 (Strong Buy) and MYR Group carrying a Zacks Rank #3 (Hold), the former appears to be the stronger investment at this stage. The company's rapidly expanding backlog, improving earnings estimate revisions, growing exposure to reliable power generation and data center-related infrastructure, together with stronger share price performance, provide greater revenue visibility and reinforce its long-term growth prospects. You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).