Head-To-Head Analysis: Argan (AGX) and VALLOUREC SA/S (VLOWY)

Argan (NYSE: AGX) and VALLOUREC SA/S (OTCMKTS:VLOWY) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Argan and VALLOUREC SA/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Argan 0 0 1 0 3.00
VALLOUREC SA/S 0 0 0 0 N/A

Argan currently has a consensus target price of $56.00, suggesting a potential upside of 36.75%. Given Argan’s higher possible upside, analysts plainly believe Argan is more favorable than VALLOUREC SA/S.

Earnings & Valuation

This table compares Argan and VALLOUREC SA/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Argan $892.82 million 0.71 $72.01 million N/A N/A
VALLOUREC SA/S $4.24 billion 0.65 -$606.97 million N/A N/A

Argan has higher earnings, but lower revenue than VALLOUREC SA/S.

Dividends

Argan pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. VALLOUREC SA/S does not pay a dividend.

Risk & Volatility

Argan has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, VALLOUREC SA/S has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500.

Institutional & Insider Ownership

78.0% of Argan shares are held by institutional investors. 7.5% of Argan shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Argan and VALLOUREC SA/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Argan 7.00% 16.11% 9.19%
VALLOUREC SA/S -15.24% -19.97% -8.61%

Summary

Argan beats VALLOUREC SA/S on 10 of the 12 factors compared between the two stocks.

About Argan

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, development, technical, and consulting services to the power generation and renewable energy markets. The company's Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for 44 projects with approximately 15,000 megawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and global energy plant construction firms. Its Industrial Fabrication and Field Services segment provides industrial steel fabrication and field services to light and heavy industrial organizations that comprise forest products, power, large fertilizer, and mining and petrochemical companies in southern region of the United States. The company's Telecommunications Infrastructure Services segment offers outside plant cabling services, including trench-less directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also offers inside premises wiring services consisting of structuring, cabling, terminations, and connectivity that provide the physical transport for high speed data, voice, video, and security networks. This segment serves state and local government agencies, regional communications service providers, electric utilities, other commercial customers, and federal government facilities, including cleared facilities in the mid-Atlantic region. Argan, Inc. was founded in 1961 and is headquartered in Rockville, Maryland.

About VALLOUREC SA/S

Vallourec SA, through its subsidiaries, provides tubular solutions primarily for the energy markets and other industrial applications in the European Union, North America, South America, Asia, the Middle East, and internationally. It operates through Seamless Tubes and Specialty Products segments. The company produces hot-rolled seamless carbon and alloy steel tubes for the oil and gas, power generation, chemical and petrochemical, and automotive and mechanical engineering industries, as well as produces stainless steel and titanium tubes. It also offers casing and tubing products, and accessories for oil and gas well equipment; well-drilling products, including drill pipes, hole assemblies, and VAM connections and accessories for drill strings; and offshore and onshore line pipes, as well as tubes for umbilicals. In addition, the company provides hydrocarbon processing tubes, steam tubes and pipes, titanium and stainless steel welded tubes, and steam generator tubes for power, nuclear, and conventional plants. Further, it offers hot-rolled pipes and hollow sections used in various applications, including drilling and other platforms, bridges, buildings and other roofed structures, cranes, agricultural and industrial machinery, mechanical components and systems, mining, and offshore projects. Additionally, the company provides coating and welding services for offshore and onshore projects. Vallourec SA was founded in 1899 and is headquartered in Boulogne-Billancourt, France.

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