Fluor (NYSE:FLR) and Quanta Services (NYSE:PWR) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Profitability
This table compares Fluor and Quanta Services' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Fluor | -3.63% | 10.56% | 1.89% |
Quanta Services | 3.45% | 11.61% | 5.61% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Fluor and Quanta Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Fluor | 0 | 5 | 1 | 0 | 2.17 |
Quanta Services | 0 | 3 | 7 | 0 | 2.70 |
Fluor currently has a consensus price target of $13.40, indicating a potential downside of 25.39%. Quanta Services has a consensus price target of $73.70, indicating a potential downside of 11.49%. Given Quanta Services' stronger consensus rating and higher probable upside, analysts clearly believe Quanta Services is more favorable than Fluor.
Earnings and Valuation
This table compares Fluor and Quanta Services' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Fluor | $14.35 billion | 0.18 | $-1,522,160,000.00 | $2.99 | 6.01 |
Quanta Services | $12.11 billion | 0.95 | $402.04 million | $3.05 | 27.11 |
Quanta Services has lower revenue, but higher earnings than Fluor. Fluor is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
64.6% of Fluor shares are held by institutional investors. Comparatively, 86.5% of Quanta Services shares are held by institutional investors. 0.8% of Fluor shares are held by insiders. Comparatively, 1.4% of Quanta Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Fluor has a beta of 2.85, suggesting that its share price is 185% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Summary
Quanta Services beats Fluor on 12 of the 14 factors compared between the two stocks.