Fluor Corporation (FLR) & NCI Building Systems (NCS) Financial Analysis
Fluor Corporation (NYSE: FLR) and NCI Building Systems (NYSE:NCS) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Valuation & Earnings
This table compares Fluor Corporation and NCI Building Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fluor Corporation||$19.31 billion||0.29||$562.31 million||$0.79||50.63|
|NCI Building Systems||$1.75 billion||0.56||$156.28 million||$0.79||17.34|
Fluor Corporation has higher revenue and earnings than NCI Building Systems. NCI Building Systems is trading at a lower price-to-earnings ratio than Fluor Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
84.5% of Fluor Corporation shares are held by institutional investors. Comparatively, 93.8% of NCI Building Systems shares are held by institutional investors. 1.3% of Fluor Corporation shares are held by company insiders. Comparatively, 1.8% of NCI Building Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Fluor Corporation and NCI Building Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NCI Building Systems||3.18%||18.31%||5.31%|
Risk and Volatility
Fluor Corporation has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, NCI Building Systems has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Fluor Corporation and NCI Building Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NCI Building Systems||0||1||3||0||2.75|
Fluor Corporation presently has a consensus target price of $48.40, suggesting a potential upside of 21.00%. NCI Building Systems has a consensus target price of $18.13, suggesting a potential upside of 32.30%. Given NCI Building Systems’ stronger consensus rating and higher possible upside, analysts plainly believe NCI Building Systems is more favorable than Fluor Corporation.
Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. NCI Building Systems does not pay 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.
NCI Building Systems beats Fluor Corporation on 12 of the 15 factors compared between the two stocks.
Fluor Corporation Company Profile
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.
NCI Building Systems Company Profile
NCI Building Systems, Inc. is a manufacturer and marketer of metal products in North America. The Company’s operating segments include Engineered building systems, Metal components and Metal coil coating. The Engineered building systems segment is engaged in the manufacturing of main frames and long bay systems, and engineering and drafting. The Metal components segment’s products include metal roof and wall panels, doors, metal partitions, metal trim, insulated metal panel (IMP) products and other related accessories. The Company manufactures and distributes a range of metal products for the non-residential construction market. It operates in the United States, Mexico, Canada and China. The Company provides metal coil coating services, and designs, engineers, manufactures and markets metal components and engineered building systems. It also provides metal coil coating services for commercial and construction applications, servicing both internal and external customers.
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