Head to Head Analysis: KBR (KBR) & The Competition

KBR (NYSE:KBR) is one of 203 public companies in the “Professional Services” industry, but how does it weigh in compared to its competitors? We will compare KBR to related companies based on the strength of its earnings, valuation, institutional ownership, dividends, profitability, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for KBR and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBR	0	5	3	0	2.38
KBR Competitors	1591	6477	9184	432	2.48

KBR currently has a consensus price target of $44.83, suggesting a potential upside of 14.80%. As a group, “Professional Services” companies have a potential upside of 27.02%. Given KBR’s competitors stronger consensus rating and higher probable upside, analysts clearly believe KBR has less favorable growth aspects than its competitors.

Dividends

KBR pays an annual dividend of $0.66 per share and has a dividend yield of 1.7%. KBR pays out 19.0% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.5% and pay out -139.0% of their earnings in the form of a dividend. KBR has raised its dividend for 6 consecutive years. KBR lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares KBR and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KBR	5.65%	31.66%	7.67%
KBR Competitors	0.21%	36.55%	4.39%

Volatility and Risk

KBR has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, KBR’s competitors have a beta of 0.96, indicating that their average stock price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares KBR and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KBR	$7.82 billion	$415.00 million	11.22
KBR Competitors	$3.39 billion	$228.39 million	32.87

KBR has higher revenue and earnings than its competitors. KBR is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

97.0% of KBR shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 1.1% of KBR shares are held by insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

KBR competitors beat KBR on 10 of the 15 factors compared.

KBR Company Profile

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to the defense, renewable energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. This segment also provides synergistic services, including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions; high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization; and digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.