Analyzing Orion Group (NYSE:ORN) & Jacobs Engineering (NYSE:J)

Jacobs Engineering (NYSE:J) and Orion Group (NYSE:ORN) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares Jacobs Engineering and Orion Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jacobs Engineering 6.66% 11.42% 5.42%
Orion Group -16.44% -6.87% -2.69%

Insider and Institutional Ownership

90.4% of Jacobs Engineering shares are owned by institutional investors. Comparatively, 71.1% of Orion Group shares are owned by institutional investors. 1.0% of Jacobs Engineering shares are owned by insiders. Comparatively, 7.5% of Orion Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Jacobs Engineering has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Orion Group has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares Jacobs Engineering and Orion Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jacobs Engineering $12.74 billion 0.98 $847.98 million $5.05 18.61
Orion Group $520.89 million 0.32 -$94.42 million ($0.37) -15.32

Jacobs Engineering has higher revenue and earnings than Orion Group. Orion Group is trading at a lower price-to-earnings ratio than Jacobs Engineering, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Jacobs Engineering and Orion Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jacobs Engineering 0 0 2 0 3.00
Orion Group 0 0 3 0 3.00

Jacobs Engineering presently has a consensus target price of $110.00, suggesting a potential upside of 17.02%. Orion Group has a consensus target price of $6.65, suggesting a potential upside of 17.28%. Given Orion Group’s higher possible upside, analysts clearly believe Orion Group is more favorable than Jacobs Engineering.

Summary

Jacobs Engineering beats Orion Group on 9 of the 12 factors compared between the two stocks.

About Jacobs Engineering

Jacobs Engineering Group, Inc. engages in the provision of a diverse range of technical, professional, and construction services to industrial, commercial, and governmental clients. Jacobs provides professional services through two lines of businesses: Critical Mission Solutions, and People and Places Solutions. Though the Critical Mission Solutions business, it provides cyber security, data analytics, software application development, enterprise and mission IT, systems integration and other technical consulting solutions to government agencies as well as selective aerospace, automotive and telecom customers. Its representative clients include national government departments/agencies in the US, Europe, United Kingdom, Australia, and Asia; state and local departments of transportation within the US; and private industry firms. The People and Places Solutions business provides end-to-end solutions for clients projects which includes connected mobility, water, smart cities, advanced manufacturing or the environment. Its clients include national, state and local government in the U.S., Europe, U.K., Middle East, Australia, New Zealand and Asia, as well as the private sector throughout the world. The company was founded by Joseph J. Jacobs in 1947 and is headquartered in Dallas, TX.

About Orion Group

Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the continental United States, Alaska, Canada, and the Caribbean Basin. It operates in two segments, Marine and Concrete. The company's marine construction services include construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility projects comprise public port facilities for container ship loading and unloading; cruise ship port facilities; private terminals; special-use navy terminals; recreational use marinas and docks; and other marine-based facilities. The company's marine pipeline service projects consist of the installation and removal of underwater buried pipeline transmission lines; installation of pipeline intakes and outfalls for industrial facilities; construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; creation of hot taps and tie-ins; and inspection, maintenance, and repair services. Its bridge and causeway projects include the construction, repair, and maintenance of overwater bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structures used for erosion control, wetlands creation, and environmental remediation. The company also offers specialty services, such as design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair services. In addition, it provides light commercial, structural, and other concrete construction services. The company was formerly known as Orion Marine Group, Inc. and changed its name to Orion Group Holdings, Inc. in May 2016. Orion Group Holdings, Inc. was founded in 1994 and is headquartered in Houston, Texas.

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