KBR (NYSE: KBR) is one of 47 public companies in the “Construction & Engineering” industry, but how does it contrast to its rivals? We will compare KBR to similar businesses based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, risk and earnings.

Volatility and Risk

KBR has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, KBR’s rivals have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Institutional and Insider Ownership

99.7% of KBR shares are owned by institutional investors. Comparatively, 79.2% of shares of all “Construction & Engineering” companies are owned by institutional investors. 0.6% of KBR shares are owned by insiders. Comparatively, 11.1% of shares of all “Construction & Engineering” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

KBR pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. KBR pays out -128.0% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 1.5% and pay out 125.1% of their earnings in the form of a dividend. KBR is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
KBR -0.81% 8.74% 1.89%
KBR Competitors 3.22% 10.60% 3.47%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
KBR $4.46 billion $9.00 million -71.20
KBR Competitors $3.12 billion $144.36 million 18.51

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

Analyst Ratings

This is a summary of current ratings and recommmendations for KBR and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KBR 1 2 7 0 2.60
KBR Competitors 195 989 1554 21 2.51

KBR currently has a consensus price target of $18.67, suggesting a potential upside of 4.87%. As a group, “Construction & Engineering” companies have a potential upside of 24.90%. Given KBR’s rivals higher possible upside, analysts clearly believe KBR has less favorable growth aspects than its rivals.

Summary

KBR rivals beat KBR on 8 of the 15 factors compared.

About KBR

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.

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