Financial Analysis: Fluor Corporation (FLR) vs. USD Partners (USDP)
Fluor Corporation (NYSE: FLR) and USD Partners (NYSE:USDP) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.
Earnings & Valuation
This table compares Fluor Corporation and USD Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fluor Corporation||$19.31 billion||0.29||$562.31 million||$0.79||51.18|
|USD Partners||$110.04 million||2.52||$55.88 million||$1.23||8.54|
Fluor Corporation has higher revenue and earnings than USD Partners. USD Partners is trading at a lower price-to-earnings ratio than Fluor Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
84.5% of Fluor Corporation shares are owned by institutional investors. Comparatively, 40.2% of USD Partners shares are owned by institutional investors. 1.3% of Fluor Corporation shares are owned by company 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.
Risk & Volatility
Fluor Corporation has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, USD Partners has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
This table compares Fluor Corporation and USD Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Fluor Corporation and USD Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fluor Corporation presently has a consensus price target of $48.40, suggesting a potential upside of 19.71%. USD Partners has a consensus price target of $16.00, suggesting a potential upside of 52.38%. Given USD Partners’ stronger consensus rating and higher possible upside, analysts plainly believe USD Partners is more favorable than Fluor Corporation.
Fluor Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. USD Partners pays an annual dividend of $1.36 per share and has a dividend yield of 13.0%. Fluor Corporation pays out 106.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. USD Partners pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
USD Partners beats Fluor Corporation on 8 of the 15 factors compared between the two stocks.
About Fluor Corporation
Fluor Corporation (Fluor) is a holding company. The Company operates its business in four segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government, and Maintenance, Modification & Asset Integrity (MMAI). The Company, through its subsidiaries, offers professional services providing engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services on a global basis. The Company is an integrated solutions provider for various industries, including oil and gas, chemicals and petrochemicals, mining and metals, transportation, power, life sciences and advanced manufacturing. It is also a service provider to the United States federal Government and governments abroad. It offers services in various categories, including engineering and design, procurement, construction, fabrication, maintenance, modification and asset integrity and project management.
About USD Partners
USD Partners LP acquires, develops and operates energy-related logistics assets, including rail terminals and other midstream infrastructure. The Company’s segments include Terminalling services and Fleet services. The Terminalling services segment consists of various operations, including Hardisty terminal, Casper terminal and Ethanol terminals. Its Hardisty terminal is an origination terminal where it loads various grades of Canadian crude oil onto railcars for transportation to end markets. The Casper terminal is a crude oil storage, blending and railcar loading terminal located in Casper, Wyoming. Its San Antonio and West Colton terminals are unit train-capable destination terminals that transload ethanol received by rail from producers onto trucks to meet local ethanol demand. The Company provides its customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under master fleet services agreements.
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