Critical Survey: Great Lakes Dredge & Dock (NASDAQ:GLDD) vs. Técnicas Reunidas (OTCMKTS:TNISF)

Great Lakes Dredge & Dock (NASDAQ:GLDD) and Técnicas Reunidas (OTCMKTS:TNISF) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Dividends

Great Lakes Dredge & Dock pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Técnicas Reunidas pays an annual dividend of $1.10 per share and has a dividend yield of 2.8%. Great Lakes Dredge & Dock pays out 7.9% of its earnings in the form of a dividend. Técnicas Reunidas pays out 47.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares Great Lakes Dredge & Dock and Técnicas Reunidas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Great Lakes Dredge & Dock	$888.28 million	1.28	$73.47 million	$1.07	15.89
Técnicas Reunidas	N/A	N/A	N/A	$2.34	17.10

Great Lakes Dredge & Dock has higher revenue and earnings than Técnicas Reunidas. Great Lakes Dredge & Dock is trading at a lower price-to-earnings ratio than Técnicas Reunidas, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Great Lakes Dredge & Dock and Técnicas Reunidas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Lakes Dredge & Dock	1	4	1	0	2.00
Técnicas Reunidas	0	0	0	0	0.00

Great Lakes Dredge & Dock currently has a consensus target price of $17.00, indicating a potential upside of 0.00%. Given Great Lakes Dredge & Dock’s stronger consensus rating and higher possible upside, research analysts plainly believe Great Lakes Dredge & Dock is more favorable than Técnicas Reunidas.

Insider & Institutional Ownership

89.1% of Great Lakes Dredge & Dock shares are owned by institutional investors. Comparatively, 30.7% of Técnicas Reunidas shares are owned by institutional investors. 2.2% of Great Lakes Dredge & Dock shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Great Lakes Dredge & Dock and Técnicas Reunidas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Great Lakes Dredge & Dock	8.27%	16.46%	6.48%
Técnicas Reunidas	N/A	N/A	N/A

Summary

Great Lakes Dredge & Dock beats Técnicas Reunidas on 10 of the 13 factors compared between the two stocks.

About Great Lakes Dredge & Dock

Great Lakes Dredge & Dock Corp. engages in the provision of dredging services. Its projects include channel and port maintenance, channel deepening and port expansion, coastal protection and restoration, as well as land reclamation. The company was founded by William A. Lydon and Frederick C. Drews in 1890 and is headquartered in Houston, TX.

About Técnicas Reunidas

Técnicas Reunidas, S.A., an engineering and construction company, designs and manages industrial plant projects worldwide. It operates through Oil and Gas, Power, and Other Industries segments. The Oil and Gas segment offers engineering, procurement, and construction services in oil processing operations, and chemical production and processing operations; services related to the natural gas production and extraction value chain, such as production, processing, storage, and transportation; constructs, revamps, and expands refining plants; designs and builds auxiliary services and other refining units; and designs and constructs monomers, polymers and plastics, chemical, and fertilizer producing and processing plants. The Power segment provides consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated plants with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste plants, and biomass technology plants, as well as plant operation and maintenance services; and supplies turnkey plants. The Other Industries segment undertakes projects in various areas that include airports, industrial facilities, and desalination and water treatment plants, as well as projects for public authorities and other organizations, including management of car parks and sports centers. Técnicas Reunidas, S.A. is also involved in the real estate development, commercial development, and machinery wholesale business; and technical assistance, construction supervision, project management, technical management, and start-up and training activities. The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972. Técnicas Reunidas, S.A. was incorporated in 1960 and is based in Madrid, Spain.