Critical Survey: Quanta Services (PWR) versus Foster Wheeler (FWLT)

Quanta Services (NYSE: PWR) and Foster Wheeler (NASDAQ:FWLT) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Profitability

This table compares Quanta Services and Foster Wheeler’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quanta Services 3.18% 8.47% 5.08%
Foster Wheeler N/A N/A N/A

Valuation and Earnings

This table compares Quanta Services and Foster Wheeler’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quanta Services $7.65 billion 0.78 $198.38 million $1.85 20.77
Foster Wheeler N/A N/A N/A $0.90 N/A

Quanta Services has higher revenue and earnings than Foster Wheeler. Foster Wheeler 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

86.0% of Quanta Services shares are owned by institutional investors. 0.8% of Quanta Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Quanta Services and Foster Wheeler, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quanta Services 0 1 9 0 2.90
Foster Wheeler 0 0 0 0 N/A

Quanta Services currently has a consensus target price of $45.22, indicating a potential upside of 17.70%.

Summary

Quanta Services beats Foster Wheeler on 8 of the 8 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.

Foster Wheeler Company Profile

Foster Wheeler AG (Foster Wheeler) is a supplier of engineering, construction and project management contractor and power equipment. It operates through two business groups: Global Engineering and Construction Group (Global E&C Group), and Global Power Group. Its Global E&C Group, which operates worldwide, designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure. Its Global Power Group designs, manufactures and erects steam generators and auxiliary equipment for electric power generating stations, district heating and power plants and industrial facilities worldwide.In May 2014, the Company announced that a subsidiary of its Global Power Group acquired Siemens Environmental Systems and Services business.

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