Critical Contrast: KBR (KBR) & NCI Building Systems (NCS)
KBR (NYSE: KBR) and NCI Building Systems (NYSE:NCS) are both construction companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitabiliy, institutional ownership and earnings.
KBR pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. NCI Building Systems does not pay a dividend. KBR pays out -68.1% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares KBR and NCI Building Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|KBR||$4.38 billion||0.50||$15.00 million||($0.47)||-32.36|
|NCI Building Systems||$1.75 billion||0.71||$156.28 million||$0.86||20.35|
NCI Building Systems has higher revenue, but lower earnings than KBR. KBR is trading at a lower price-to-earnings ratio than NCI Building Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for KBR and NCI Building Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NCI Building Systems||0||2||3||0||2.60|
KBR presently has a consensus price target of $18.50, suggesting a potential upside of 21.63%. NCI Building Systems has a consensus price target of $18.50, suggesting a potential upside of 5.71%. Given KBR’s higher possible upside, research analysts clearly believe KBR is more favorable than NCI Building Systems.
Volatility & Risk
KBR has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, NCI Building Systems has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
Institutional & Insider Ownership
99.8% of KBR shares are owned by institutional investors. Comparatively, 92.3% of NCI Building Systems shares are owned by institutional investors. 0.6% of KBR shares are owned by insiders. Comparatively, 1.8% of NCI Building Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares KBR and NCI Building Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NCI Building Systems||3.50%||20.84%||5.75%|
NCI Building Systems beats KBR on 8 of the 15 factors compared between the two stocks.
KBR, Inc. is a provider of professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. The Company operates through business segments, including Technology & Consulting (T&C), Engineering & Construction (E&C), Government Services (GS), Non-strategic Business and Other. The T&C business segment combines KBR technologies, knowledge-based services and its three specialty consulting brands, Granherne, Energo and GVA, under a single customer-facing global business. The E&C business segment provides project and program delivery solution across the globe. The GS business segment provides life-cycle support solutions to defense, space, aviation and other programs and missions for government agencies in the United States, the United Kingdom and Australia. Its solutions include engineering services, mission and logistics support solutions, consulting, procurement, construction management and other support services.
About NCI Building Systems
NCI Building Systems, Inc. is a manufacturer and marketer of metal products in North America. The Company’s operating segments include Engineered building systems, Metal components and Metal coil coating. The Engineered building systems segment is engaged in the manufacturing of main frames and long bay systems, and engineering and drafting. The Metal components segment’s products include metal roof and wall panels, doors, metal partitions, metal trim, insulated metal panel (IMP) products and other related accessories. The Company manufactures and distributes a range of metal products for the non-residential construction market. It operates in the United States, Mexico, Canada and China. The Company provides metal coil coating services, and designs, engineers, manufactures and markets metal components and engineered building systems. It also provides metal coil coating services for commercial and construction applications, servicing both internal and external customers.
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