Reviewing Chicago Bridge & Iron Company N.V. (CBI) and Quanta Services (PWR)
Chicago Bridge & Iron Company N.V. (NYSE: CBI) and Quanta Services (NYSE:PWR) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
This is a summary of recent recommendations and price targets for Chicago Bridge & Iron Company N.V. and Quanta Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chicago Bridge & Iron Company N.V.||2||7||5||0||2.21|
Chicago Bridge & Iron Company N.V. presently has a consensus target price of $22.29, suggesting a potential upside of 69.86%. Quanta Services has a consensus target price of $42.00, suggesting a potential upside of 16.60%. Given Chicago Bridge & Iron Company N.V.’s higher probable upside, equities analysts plainly believe Chicago Bridge & Iron Company N.V. is more favorable than Quanta Services.
Earnings and Valuation
This table compares Chicago Bridge & Iron Company N.V. and Quanta Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chicago Bridge & Iron Company N.V.||$9.49 billion||0.14||$9.27 million||($9.43)||-1.39|
|Quanta Services||$8.52 billion||0.66||$655.04 million||$1.77||20.35|
Quanta Services has higher revenue, but lower earnings than Chicago Bridge & Iron Company N.V.. Chicago Bridge & Iron Company N.V. is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Chicago Bridge & Iron Company N.V. has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Quanta Services has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
Institutional & Insider Ownership
63.8% of Chicago Bridge & Iron Company N.V. shares are held by institutional investors. Comparatively, 88.5% of Quanta Services shares are held by institutional investors. 1.1% of Chicago Bridge & Iron Company N.V. shares are held by company insiders. Comparatively, 0.7% of Quanta Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Chicago Bridge & Iron Company N.V. and Quanta Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chicago Bridge & Iron Company N.V.||-10.54%||-3.92%||-0.82%|
Chicago Bridge & Iron Company N.V. pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Quanta Services does not pay a dividend. Chicago Bridge & Iron Company N.V. pays out -3.0% of its earnings in the form of a dividend.
Quanta Services beats Chicago Bridge & Iron Company N.V. on 9 of the 15 factors compared between the two stocks.
About Chicago Bridge & Iron Company N.V.
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.
About Quanta Services
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.
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