Head to Head Contrast: The Shaw Group (SHAW) & KBR (NYSE:KBR)

KBR (NYSE: KBR) and The Shaw Group (NYSE:SHAW) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
KBR 1.63% 10.22% 2.14%
The Shaw Group N/A N/A N/A

Dividends

KBR pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. The Shaw Group does not pay a dividend. KBR pays out 62.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares KBR and The Shaw Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KBR $4.27 billion 0.58 -$61.00 million $0.51 34.94
The Shaw Group N/A N/A N/A $3.25 N/A

The Shaw Group has lower revenue, but higher earnings than KBR. The Shaw Group is trading at a lower price-to-earnings ratio than KBR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for KBR and The Shaw Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KBR 0 2 5 0 2.71
The Shaw Group 0 0 0 0 N/A

KBR currently has a consensus target price of $21.33, indicating a potential upside of 19.72%.

Summary

KBR beats The Shaw Group on 6 of the 8 factors compared between the two stocks.

About KBR

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.

About The Shaw Group

The Shaw Group Inc. (Shaw) is a provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to a diverse client base that includes multinational and national oil companies and industrial corporations, regulated utilities, independent and merchant power producers, and government agencies. The Company has developed and acquired intellectual property, including induction pipe bending technology and environmental decontamination technologies. Its segments include Power, Plant Services, Environmental & Infrastructure (E&I), Fabrication & Manufacturing (F&M), Energy & Chemicals (E&C) Segment, Investment in Westinghouse, and Corporate segment. Effective August 31, 2012, the Company completed the divestiture of its Energy & Chemicals business to Technip. On January 4, 2013, TOSHIBA CORP acquired a 20% stake in Westinghouse from Shaw Group Inc.

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