Reviewing KBR (NYSE:KBR) and SU Group (NASDAQ:SUGP)

KBR (NYSE:KBR) and SU Group (NASDAQ:SUGP) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider and Institutional Ownership

97.0% of KBR shares are owned by institutional investors. Comparatively, 68.1% of SU Group shares are owned by institutional investors. 1.1% of KBR shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares KBR and SU Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KBR	$7.74 billion	0.72	$375.00 million	$2.91	15.13
SU Group	$24.72 million	0.35	-$2.38 million	N/A	N/A

KBR has higher revenue and earnings than SU Group.

Profitability

This table compares KBR and SU Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KBR	4.71%	35.14%	7.63%
SU Group	N/A	N/A	N/A

Risk and Volatility

KBR has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, SU Group has a beta of 2.68, indicating that its stock price is 168% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for KBR and SU Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBR	1	5	5	0	2.36
SU Group	1	0	0	0	1.00

KBR currently has a consensus target price of $57.40, indicating a potential upside of 30.33%. Given KBR’s stronger consensus rating and higher possible upside, equities analysts clearly believe KBR is more favorable than SU Group.

Summary

KBR beats SU Group on 11 of the 12 factors compared between the two stocks.

About KBR

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to the defense, renewable energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. This segment also provides synergistic services, including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions; high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization; and digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.

About SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.