Critical Contrast: Chicago Bridge & Iron (CBI) versus China Advanced Constructn Mtrls Grp (CADC)

Chicago Bridge & Iron (NYSE:CBI) and China Advanced Constructn Mtrls Grp (NASDAQ:CADC) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Institutional & Insider Ownership

63.0% of Chicago Bridge & Iron shares are owned by institutional investors. Comparatively, 0.7% of China Advanced Constructn Mtrls Grp shares are owned by institutional investors. 1.1% of Chicago Bridge & Iron shares are owned by insiders. Comparatively, 38.9% of China Advanced Constructn Mtrls Grp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chicago Bridge & Iron and China Advanced Constructn Mtrls Grp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chicago Bridge & Iron 0 6 1 0 2.14
China Advanced Constructn Mtrls Grp 0 0 0 0 N/A

Chicago Bridge & Iron currently has a consensus price target of $15.75, suggesting a potential downside of 3.90%. Given Chicago Bridge & Iron’s higher possible upside, equities research analysts plainly believe Chicago Bridge & Iron is more favorable than China Advanced Constructn Mtrls Grp.

Valuation and Earnings

This table compares Chicago Bridge & Iron and China Advanced Constructn Mtrls Grp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chicago Bridge & Iron N/A N/A N/A N/A N/A
China Advanced Constructn Mtrls Grp $45.05 million 0.36 -$9.77 million N/A N/A

Chicago Bridge & Iron has higher earnings, but lower revenue than China Advanced Constructn Mtrls Grp.

Profitability

This table compares Chicago Bridge & Iron and China Advanced Constructn Mtrls Grp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chicago Bridge & Iron N/A N/A N/A
China Advanced Constructn Mtrls Grp 1.33% 5.19% 0.86%

Dividends

Chicago Bridge & Iron pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. China Advanced Constructn Mtrls Grp does not pay a dividend.

Summary

China Advanced Constructn Mtrls Grp beats Chicago Bridge & Iron on 5 of the 9 factors compared between the two stocks.

Chicago Bridge & Iron 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.

China Advanced Constructn Mtrls Grp Company Profile

China Advanced Construction Materials Group, Inc., through its subsidiaries, produces and sells construction materials for large scale infrastructure, commercial, and residential developments primarily in the People's Republic of China. Its products include ready-mixed concrete blends, controlled low-strength materials, high-strength concrete products with customized fibers, and soil cement and foundation concrete products; and compound admixture concrete, lightweight aggregate concrete, thermostat concrete, and C100 high performance concrete products. The company sells its concrete products primarily to local construction companies. Its target customers include general contractors, developers, design engineers, architects, and homebuilders. The company was founded in 2002 and is based in Beijing, the People's Republic of China. As of May 16, 2018, China Advanced Construction Materials Group, Inc. operates as a subsidiary of Hou Sing International Business Limited.

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