Quanta Services (NYSE: PWR) and Chicago Bridge & Iron Company N.V. (NYSE:CBI) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Profitability
This table compares Quanta Services and Chicago Bridge & Iron Company N.V.’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% |
| Chicago Bridge & Iron Company N.V. | -10.54% | -3.92% | -0.82% |
Valuation and Earnings
This table compares Quanta Services and Chicago Bridge & Iron Company N.V.’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Quanta Services | $8.52 billion | 0.61 | $655.04 million | $1.77 | 19.55 |
| Chicago Bridge & Iron Company N.V. | $9.49 billion | 0.12 | $9.27 million | ($9.43) | -1.17 |
Quanta Services has higher revenue, but lower earnings than Chicago Bridge & Iron Company N.V.. Chicago Bridge & Iron Company N.V. is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.
Dividends
Chicago Bridge & Iron Company N.V. pays an annual dividend of $0.28 per share and has a dividend yield of 2.5%. Quanta Services does not pay a dividend. Chicago Bridge & Iron Company N.V. pays out -3.0% of its earnings in the form of a dividend.
Risk and Volatility
Quanta Services has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Chicago Bridge & Iron Company N.V. has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Quanta Services and Chicago Bridge & Iron Company N.V., as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quanta Services | 0 | 2 | 7 | 0 | 2.78 |
| Chicago Bridge & Iron Company N.V. | 2 | 7 | 5 | 0 | 2.21 |
Quanta Services presently has a consensus price target of $42.00, suggesting a potential upside of 21.35%. Chicago Bridge & Iron Company N.V. has a consensus price target of $22.57, suggesting a potential upside of 105.38%. Given Chicago Bridge & Iron Company N.V.’s higher probable upside, analysts clearly believe Chicago Bridge & Iron Company N.V. is more favorable than Quanta Services.
Insider & Institutional Ownership
88.6% of Quanta Services shares are held by institutional investors. Comparatively, 63.8% of Chicago Bridge & Iron Company N.V. shares are held by institutional investors. 0.7% of Quanta Services shares are held by insiders. Comparatively, 1.1% of Chicago Bridge & Iron Company N.V. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Quanta Services beats Chicago Bridge & Iron Company N.V. on 9 of the 15 factors compared between the two stocks.
Quanta Services Company Profile
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.
Chicago Bridge & Iron Company N.V. Company Profile
Chicago Bridge & Iron Company N.V. provides services to customers in energy infrastructure market. The Company provides services, such as conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services. Its Engineering and Construction segment provides engineering, procurement, and construction (EPC) services. Its Fabrication Services segment provides fabrication and erection of steel plate structures; fabrication of piping systems and process modules, and manufacturing and distribution of pipe and fittings. The Technology segment provides process technology licenses and associated engineering services, and catalysts, for petrochemical and refining industries, and offers process planning and project development services.
Receive News & Ratings for Quanta Services Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Quanta Services Inc. and related companies with MarketBeat.com's FREE daily email newsletter.
