Comparing Quanta Services (PWR) & Fluor Corporation (FLR)

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

Volatility & Risk



Quanta Services has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Fluor Corporation has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Institutional & Insider Ownership

87.0% of Quanta Services shares are held by institutional investors. Comparatively, 84.7% of Fluor Corporation shares are held by institutional investors. 0.7% of Quanta Services shares are held by insiders. Comparatively, 1.3% of Fluor Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Quanta Services 3.21% 8.36% 5.11%
Fluor Corporation 0.58% 13.80% 4.92%

Dividends

Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. Quanta Services 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.

Earnings & Valuation

This table compares Quanta Services and Fluor Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quanta Services $8.52 billion 0.69 $655.04 million $1.77 21.46
Fluor Corporation $19.31 billion 0.31 $562.31 million $0.79 54.10

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Quanta Services and Fluor Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quanta Services 0 2 8 0 2.80
Fluor Corporation 0 9 4 0 2.31

Quanta Services presently has a consensus target price of $43.38, suggesting a potential upside of 14.20%. Fluor Corporation has a consensus target price of $47.17, suggesting a potential upside of 10.36%. Given Quanta Services’ stronger consensus rating and higher probable upside, analysts plainly believe Quanta Services is more favorable than Fluor Corporation.

Summary

Quanta Services beats Fluor Corporation on 11 of the 16 factors compared between the two stocks.

About Quanta Services

Quanta Services, Inc. is a provider of specialty contracting services, offering infrastructure solutions primarily to the electric power and oil and gas industries in the United States, Canada and Australia and selected other international markets. The Company operates through two segments: Electric Power Infrastructure Services, which provides network solutions to customers in the electric power industry, and Oil and Gas Infrastructure Services, which provides network solutions to customers involved in the development and transportation of natural gas, oil and other pipeline products. The services it provides include the design, installation, upgrade, repair and maintenance of infrastructure within each of the industries it serves, such as electric power transmission and distribution networks, substation facilities, renewable energy facilities, pipeline transmission and distribution systems and facilities, and infrastructure services for the offshore and inland water energy markets.

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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