Critical Review: Fluor Corporation (FLR) vs. URS Corp (URS)

Fluor Corporation (NYSE: FLR) and URS Corp (NYSE:URS) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Fluor Corporation and URS Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fluor Corporation 0.58% 13.80% 4.92%
URS Corp N/A N/A N/A

Earnings & Valuation

This table compares Fluor Corporation and URS Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fluor Corporation $19.31 billion 0.31 $562.31 million $0.79 53.86
URS Corp N/A N/A N/A N/A N/A

Fluor Corporation has higher revenue and earnings than URS Corp.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Fluor Corporation and URS Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fluor Corporation 0 9 3 0 2.25
URS Corp 0 0 0 0 N/A

Fluor Corporation currently has a consensus target price of $48.55, suggesting a potential upside of 14.09%. Given Fluor Corporation’s higher probable upside, equities research analysts plainly believe Fluor Corporation is more favorable than URS Corp.

Insider and Institutional Ownership

84.5% of Fluor Corporation shares are held by institutional investors. 1.3% of Fluor Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. URS Corp does not pay a dividend. Fluor Corporation pays out 106.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Fluor Corporation beats URS Corp on 9 of the 10 factors compared between the two stocks.

About Fluor Corporation

Fluor Corporation (Fluor) is a holding company. The Company operates its business in four segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government, and Maintenance, Modification & Asset Integrity (MMAI). The Company, through its subsidiaries, offers professional services providing engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services on a global basis. The Company is an integrated solutions provider for various industries, including oil and gas, chemicals and petrochemicals, mining and metals, transportation, power, life sciences and advanced manufacturing. It is also a service provider to the United States federal Government and governments abroad. It offers services in various categories, including engineering and design, procurement, construction, fabrication, maintenance, modification and asset integrity and project management.

About URS Corp

URS Corporation (URS) is a provider of engineering, construction and technical services. The Company offers a range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients worldwide. It provides its services through four reporting segments: Infrastructure & Environment, Federal Services, Energy & Construction, and Oil & Gas Divisions. URS also is a United States federal government contractor in the areas of systems engineering and technical assistance, operations and maintenance, and information technology (IT) services. It provides services for federal, oil and gas, infrastructure, power, and industrial projects and programs. On May 14, 2012, it completed the acquisition of Flint Energy Services Ltd.

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