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

Profitability

This table compares Fluor Corporation and Aegion 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%
Aegion Corp 3.57% 7.52% 3.65%

Dividends

Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.2%. Aegion 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.

Insider and Institutional Ownership

84.5% of Fluor Corporation shares are held by institutional investors. Comparatively, 88.8% of Aegion Corp shares are held by institutional investors. 1.3% of Fluor Corporation shares are held by company insiders. Comparatively, 3.6% of Aegion Corp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Fluor Corporation has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Aegion Corp has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fluor Corporation $19.31 billion 0.27 $562.31 million $0.79 47.81
Aegion Corp $1.31 billion 0.51 $127.37 million $1.36 15.44

Fluor Corporation has higher revenue and earnings than Aegion Corp. Aegion Corp is trading at a lower price-to-earnings ratio than Fluor Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Fluor Corporation and Aegion Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fluor Corporation 0 8 2 0 2.20
Aegion Corp 0 5 2 0 2.29

Fluor Corporation currently has a consensus target price of $49.33, indicating a potential upside of 30.62%. Aegion Corp has a consensus target price of $23.17, indicating a potential upside of 10.32%. Given Fluor Corporation’s higher probable upside, equities analysts clearly believe Fluor Corporation is more favorable than Aegion Corp.

Summary

Aegion Corp beats Fluor Corporation on 9 of the 15 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 Aegion Corp

Aegion Corporation (Aegion) is engaged in providing infrastructure protection and maintenance. The Company operates through three segments: Infrastructure Solutions, Corrosion Protection and Energy Services. The Company offers service solutions, including rehabilitation of water and wastewater pipelines with Insituform cured-in-place pipe (CIPP) products; fusible polyvinyl chloride products for rehabilitation; fiber reinforced polymer systems for rehabilitation and strengthening; cathodic protection for corrosion engineering control and infrastructure rehabilitation; pipe coatings for corrosion control and prevention; high density polyethylene (HDPE) pipe lining for corrosion control, abrasion protection and pipeline rehabilitation, and construction and maintenance of oil and gas facilities. The Company’s Insituform CIPP Process for the rehabilitation of sewers, pipelines and other conduits utilizes a custom-manufactured tube, or liner, made of synthetic fiber.

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