Head-To-Head Analysis: Foster Wheeler (FWLT) and Granite Construction (GVA)

Foster Wheeler (NASDAQ: FWLT) and Granite Construction (NYSE:GVA) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Foster Wheeler N/A N/A N/A
Granite Construction 1.84% 5.71% 2.93%

Analyst Recommendations

This is a summary of current recommendations for Foster Wheeler and Granite Construction, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foster Wheeler 0 0 0 0 N/A
Granite Construction 0 2 7 0 2.78

Granite Construction has a consensus price target of $68.57, indicating a potential upside of 22.30%.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Foster Wheeler N/A N/A N/A $0.90 N/A
Granite Construction $2.51 billion 0.89 $57.12 million $1.31 42.80

Granite Construction has higher revenue and earnings than Foster Wheeler. Foster Wheeler is trading at a lower price-to-earnings ratio than Granite Construction, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

99.1% of Granite Construction shares are owned by institutional investors. 1.3% of Granite Construction shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Granite Construction pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Foster Wheeler does not pay a dividend. Granite Construction pays out 39.7% of its earnings in the form of a dividend.

Summary

Granite Construction beats Foster Wheeler on 9 of the 10 factors compared between the two stocks.

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.

Granite Construction Company Profile

Granite Construction Incorporated is a heavy civil contractor and construction materials producer in the United States. The Company operates through three segments: Construction, Large Project Construction and Construction Materials. The Company operates across the nation, serving both public and private sector clients. Within the public sector, it concentrates on heavy-civil infrastructure projects, including the construction of streets, roads, highways, mass transit facilities, airport infrastructure, bridges, trenchless and underground utilities, power-related facilities, water and wastewater facilities, utilities, tunnels, dams and other infrastructure-related projects. Within the private sector, the Company offers site preparation and infrastructure services for residential development, energy development, commercial and industrial sites, and other facilities, as well as provides construction management professional services.

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