Fluor Corporation (NYSE: FLR) and Grana y Montero S.A.A. (NYSE:GRAM) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
This table compares Fluor Corporation and Grana y Montero S.A.A.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grana y Montero S.A.A.||0.82%||1.55%||0.52%|
Valuation & Earnings
This table compares Fluor Corporation and Grana y Montero S.A.A.’s gross revenue, earnings per share (EPS) 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||54.10|
|Grana y Montero S.A.A.||N/A||N/A||N/A||$0.11||40.82|
Fluor Corporation has higher revenue and earnings than Grana y Montero S.A.A.. Grana y Montero S.A.A. is trading at a lower price-to-earnings ratio than Fluor Corporation, indicating that it is currently the more affordable of the two stocks.
Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. Grana y Montero S.A.A. 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.
This is a breakdown of current ratings for Fluor Corporation and Grana y Montero S.A.A., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grana y Montero S.A.A.||2||0||0||0||1.00|
Fluor Corporation presently has a consensus price target of $47.17, suggesting a potential upside of 10.36%. Given Fluor Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Fluor Corporation is more favorable than Grana y Montero S.A.A..
Volatility and Risk
Fluor Corporation has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Grana y Montero S.A.A. has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Insider and Institutional Ownership
84.7% of Fluor Corporation shares are owned by institutional investors. Comparatively, 11.7% of Grana y Montero S.A.A. shares are owned by institutional investors. 1.3% of Fluor Corporation shares are owned by company insiders. Comparatively, 27.4% of Grana y Montero S.A.A. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Fluor Corporation beats Grana y Montero S.A.A. on 10 of the 14 factors compared between the two stocks.
Fluor Corporation Company Profile
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.
Grana y Montero S.A.A. Company Profile
Grana y Montero SAA is a Peru-based holding company primarily engaged in the four business areas: Construction and Engineering Industry, Real Estate, Oil Services, and Operation of Public Concessions and Business Support Services. Through its subsidiaries, the Company provides such services as the development and management of real estate properties and leisure facilities; the exploration, production and sale of oil, natural gas and its derivates; the storage and distribution of combustibles; information technology services; engineering consultancy; the operation and maintenance of rails and roads concessions; as well as the execution and management of projects related to the generation of electric power; among others. The Company owns such subsidiaries as GMD SA, Adexus SA, Concar SA, Survial SA, Norvial SA and Promotores Asociados de Inmobiliarios SA, among others.
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