Fluor Corporation (FLR) & KBR (NYSE:KBR) Financial Survey

Fluor Corporation (NYSE: FLR) and KBR (NYSE:KBR) are both mid-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Fluor Corporation and KBR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fluor Corporation 0 9 4 0 2.31
KBR 0 1 7 0 2.88

Fluor Corporation currently has a consensus price target of $48.17, suggesting a potential upside of 12.83%. KBR has a consensus price target of $19.83, suggesting a potential upside of 7.91%. Given Fluor Corporation’s higher probable upside, equities research analysts clearly believe Fluor Corporation is more favorable than KBR.

Institutional and Insider Ownership

84.7% of Fluor Corporation shares are owned by institutional investors. Comparatively, 99.7% of KBR shares are owned by institutional investors. 1.3% of Fluor Corporation shares are owned by company insiders. Comparatively, 0.6% of KBR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Fluor Corporation and KBR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fluor Corporation $19.31 billion 0.31 $562.31 million $0.79 54.04
KBR $4.46 billion 0.58 $9.00 million ($0.25) -73.52

Fluor Corporation has higher revenue and earnings than KBR. KBR is trading at a lower price-to-earnings ratio than Fluor Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Fluor Corporation has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, KBR has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Dividends

Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. KBR pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. 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. KBR pays out -128.0% of its earnings in the form of a dividend.

Profitability

This table compares Fluor Corporation and KBR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fluor Corporation 0.58% 13.80% 4.92%
KBR -0.81% 8.74% 1.89%

Summary

Fluor Corporation beats KBR on 10 of the 16 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.

KBR Company Profile

KBR, Inc. is a provider of professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. The Company operates through business segments, including Technology & Consulting (T&C), Engineering & Construction (E&C), Government Services (GS), Non-strategic Business and Other. The T&C business segment combines KBR technologies, knowledge-based services and its three specialty consulting brands, Granherne, Energo and GVA, under a single customer-facing global business. The E&C business segment provides project and program delivery solution across the globe. The GS business segment provides life-cycle support solutions to defense, space, aviation and other programs and missions for government agencies in the United States, the United Kingdom and Australia. Its solutions include engineering services, mission and logistics support solutions, consulting, procurement, construction management and other support services.

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