John Wood Group PLC (WG.L) (LON:WG) and Petrofac Limited (PFC.L) (LON:PFC) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Profitability
This table compares John Wood Group PLC (WG.L) and Petrofac Limited (PFC.L)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
John Wood Group PLC (WG.L) | N/A | N/A | N/A |
Petrofac Limited (PFC.L) | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent ratings and price targets for John Wood Group PLC (WG.L) and Petrofac Limited (PFC.L), as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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John Wood Group PLC (WG.L) | 1 | 1 | 9 | 0 | 2.73 |
Petrofac Limited (PFC.L) | 3 | 9 | 2 | 0 | 1.93 |
John Wood Group PLC (WG.L) currently has a consensus price target of GBX 349.55, indicating a potential upside of 24.13%. Petrofac Limited (PFC.L) has a consensus price target of GBX 240.86, indicating a potential upside of 106.45%. Given Petrofac Limited (PFC.L)'s higher possible upside, analysts clearly believe Petrofac Limited (PFC.L) is more favorable than John Wood Group PLC (WG.L).
Dividends
John Wood Group PLC (WG.L) pays an annual dividend of GBX 0.28 per share and has a dividend yield of 0.1%. Petrofac Limited (PFC.L) pays an annual dividend of GBX 0.30 per share and has a dividend yield of 0.3%. John Wood Group PLC (WG.L) pays out 4.4% of its earnings in the form of a dividend. Petrofac Limited (PFC.L) pays out -0.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Petrofac Limited (PFC.L) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares John Wood Group PLC (WG.L) and Petrofac Limited (PFC.L)'s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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John Wood Group PLC (WG.L) | £9.19 billion | 0.21 | N/A | GBX 6.40 | 44.00 |
Petrofac Limited (PFC.L) | £4.81 billion | 0.08 | N/A | GBX (42.90) | -2.74 |
Petrofac Limited (PFC.L) is trading at a lower price-to-earnings ratio than John Wood Group PLC (WG.L), indicating that it is currently the more affordable of the two stocks.
Summary
John Wood Group PLC (WG.L) beats Petrofac Limited (PFC.L) on 6 of the 9 factors compared between the two stocks.