Primoris Services (NASDAQ: PRIM) and Fluor (NYSE:FLR) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
This table compares Primoris Services and Fluor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
71.8% of Primoris Services shares are held by institutional investors. Comparatively, 87.1% of Fluor shares are held by institutional investors. 24.0% of Primoris Services shares are held by company insiders. Comparatively, 1.4% of Fluor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Primoris Services has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Fluor has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Primoris Services and Fluor, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Primoris Services currently has a consensus target price of $30.00, indicating a potential upside of 14.20%. Fluor has a consensus target price of $58.33, indicating a potential upside of 2.63%. Given Primoris Services’ stronger consensus rating and higher probable upside, research analysts plainly believe Primoris Services is more favorable than Fluor.
Valuation & Earnings
This table compares Primoris Services and Fluor’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Primoris Services||$2.38 billion||0.57||$72.35 million||$1.41||18.63|
|Fluor||$19.52 billion||0.41||$191.37 million||$1.36||41.79|
Fluor has higher revenue and earnings than Primoris Services. Primoris Services is trading at a lower price-to-earnings ratio than Fluor, indicating that it is currently the more affordable of the two stocks.
Primoris Services pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Fluor pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Primoris Services pays out 17.0% of its earnings in the form of a dividend. Fluor pays out 61.8% 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.
Primoris Services beats Fluor on 9 of the 16 factors compared between the two stocks.
Primoris Services Company Profile
Primoris Services Corporation is a holding company. The Company holds various subsidiaries, through which it operates as a specialty contractor and infrastructure company. The Company provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to public utilities, petrochemical companies, energy companies, municipalities, state departments of transportation and other customers. It operates in three segments: the West Construction Services segment (West segment), the East Construction Services segment (East segment) and the Energy segment. The Company installs, replaces, repairs and rehabilitates natural gas, refined product, water and wastewater pipeline systems; large diameter gas and liquid pipeline facilities, and heavy civil projects, earthwork and site development.
Fluor Company Profile
Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, and project management services worldwide. It operates through four segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Diversified Services; and Government. The Energy, Chemicals & Mining segment offers a range of design, engineering, procurement, construction, fabrication, and project management services to upstream, midstream, downstream, chemical, petrochemical, offshore and onshore oil and gas production, liquefied natural gas, pipeline, and metals and mining markets. It also provides consulting services, such as feasibility studies, process assessment, and project finance structuring and studies. The Industrial, Infrastructure & Power segment offers design, engineering, procurement, construction, and project management services to the transportation, life sciences, manufacturing, water, and power sectors. The Diversified Services segment provides facility start-up and management, plant and facility maintenance, operations support, and asset management services to the oil and gas, chemicals, life sciences, mining and metals, consumer products, and manufacturing industries. The Government segment offers engineering, construction, logistics, base and facilities operations and maintenance, contingency response, and environmental and nuclear services to the United States government, as well as governments internationally. This segment also provides engineering and construction services, logistics, and life-support services, as well as contingency operations support services to the defense sector. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.
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