Analyzing Fluor (NYSE:FLR) & Chiyoda (OTCMKTS:CHYCY)

Chiyoda (OTCMKTS:CHYCY) and Fluor (NYSE:FLR) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Earnings and Valuation

This table compares Chiyoda and Fluor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiyoda	$3.00 billion	0.17	$178.11 million	$0.29	6.72
Fluor	$16.32 billion	0.42	$2.15 billion	$24.27	1.75

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

Volatility and Risk

Chiyoda has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500. Comparatively, Fluor has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Chiyoda and Fluor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiyoda	0	0	0	0	0.00
Fluor	1	4	4	0	2.33

Fluor has a consensus target price of $49.57, indicating a potential upside of 16.93%. Given Fluor’s stronger consensus rating and higher possible upside, analysts clearly believe Fluor is more favorable than Chiyoda.

Insider & Institutional Ownership

88.1% of Fluor shares are held by institutional investors. 1.7% of Fluor shares are held 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.

Profitability

This table compares Chiyoda and Fluor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chiyoda	6.83%	127.16%	6.60%
Fluor	25.35%	9.27%	4.06%

Summary

Fluor beats Chiyoda on 11 of the 14 factors compared between the two stocks.

About Chiyoda

Chiyoda Corporation engages in the integrated engineering business in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.

About Fluor

Fluor Corporation provides engineering, procurement, and construction (EPC); fabrication and modularization; operation and maintenance; asset integrity; and project management services worldwide. The company operates through Energy Solutions, Urban Solutions, Mission Solutions, and Other segments. The Energy Solutions segment provides solutions to the energy transition markets, including asset decarbonization, carbon capture, renewable fuels, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources. It also provides consulting services, including feasibility studies, process assessments, and project finance structuring; and a range of services for small modular reactor technologies, conventional and advanced nuclear reactor technologies. This segment serves the production and fuels, chemicals, LNG, power markets, chemicals and petrochemical industries. The Urban Solutions segment offers EPC and project management services to the infrastructure, advanced technologies, life sciences, and mining and metals industries. This segment also provides staffing services to the company and third-party clients with technical, professional, and craft resources on a contract or permanent placement basis. The Mission Solutions segment offers technical solutions to the U.S. and other governments. It also delivers solutions for nuclear security and operation, nuclear waste management, and laboratory management; and operation and maintenance, logistics, EPC, and life support solutions for mission-critical facilities across U.S. military service organizations. This segment offers site management, environmental remediation, and decommissioning for nuclear remediation at governmental facilities, as well as services to commercial nuclear clients. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.