Comparing Fluor Corporation (FLR) and Chicago Bridge & Iron Company N.V. (CBI)
Chicago Bridge & Iron Company N.V. (NYSE: CBI) and Fluor Corporation (NYSE:FLR) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
63.8% of Chicago Bridge & Iron Company N.V. shares are owned by institutional investors. Comparatively, 84.5% of Fluor Corporation shares are owned by institutional investors. 1.1% of Chicago Bridge & Iron Company N.V. shares are owned by company insiders. Comparatively, 1.3% of Fluor Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Chicago Bridge & Iron Company N.V. pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.2%. Chicago Bridge & Iron Company N.V. pays out -3.0% of its earnings in the form of a dividend. Fluor Corporation pays out 106.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chicago Bridge & Iron Company N.V. is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Chicago Bridge & Iron Company N.V. and Fluor Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chicago Bridge & Iron Company N.V.||-10.54%||-3.92%||-0.82%|
Volatility and Risk
Chicago Bridge & Iron Company N.V. has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Fluor Corporation has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Chicago Bridge & Iron Company N.V. and Fluor Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chicago Bridge & Iron Company N.V.||2||7||5||0||2.21|
Chicago Bridge & Iron Company N.V. presently has a consensus target price of $22.29, suggesting a potential upside of 80.60%. Fluor Corporation has a consensus target price of $49.33, suggesting a potential upside of 27.91%. Given Chicago Bridge & Iron Company N.V.’s stronger consensus rating and higher possible upside, research analysts plainly believe Chicago Bridge & Iron Company N.V. is more favorable than Fluor Corporation.
Earnings and Valuation
This table compares Chicago Bridge & Iron Company N.V. and Fluor Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chicago Bridge & Iron Company N.V.||$9.49 billion||0.13||$9.27 million||($9.43)||-1.31|
|Fluor Corporation||$19.31 billion||0.28||$562.31 million||$0.79||48.82|
Fluor Corporation has higher revenue and earnings than Chicago Bridge & Iron Company N.V.. Chicago Bridge & Iron Company N.V. is trading at a lower price-to-earnings ratio than Fluor Corporation, indicating that it is currently the more affordable of the two stocks.
Fluor Corporation beats Chicago Bridge & Iron Company N.V. on 9 of the 15 factors compared between the two stocks.
About Chicago Bridge & Iron Company N.V.
Chicago Bridge & Iron Company N.V. provides services to customers in energy infrastructure market. The Company provides services, such as conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services. Its Engineering and Construction segment provides engineering, procurement, and construction (EPC) services. Its Fabrication Services segment provides fabrication and erection of steel plate structures; fabrication of piping systems and process modules, and manufacturing and distribution of pipe and fittings. The Technology segment provides process technology licenses and associated engineering services, and catalysts, for petrochemical and refining industries, and offers process planning and project development services.
About Fluor Corporation
Fluor Corporation (Fluor) is a holding company. The Company operates its business in four segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government, and Maintenance, Modification & Asset Integrity (MMAI). The Company, through its subsidiaries, offers professional services providing engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services on a global basis. The Company is an integrated solutions provider for various industries, including oil and gas, chemicals and petrochemicals, mining and metals, transportation, power, life sciences and advanced manufacturing. It is also a service provider to the United States federal Government and governments abroad. It offers services in various categories, including engineering and design, procurement, construction, fabrication, maintenance, modification and asset integrity and project management.
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