Primoris Services (NASDAQ: PRIM) and Foster Wheeler (NASDAQ:FWLT) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Valuation and Earnings

This table compares Primoris Services and Foster Wheeler’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Primoris Services $2.00 billion 0.72 $26.72 million $1.24 22.49
Foster Wheeler N/A N/A N/A $0.90 N/A

Primoris Services has higher revenue and earnings than Foster Wheeler. Foster Wheeler is trading at a lower price-to-earnings ratio than Primoris Services, indicating that it is currently the more affordable of the two stocks.

Dividends

Primoris Services pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. Foster Wheeler does not pay a dividend. Primoris Services pays out 17.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

70.4% of Primoris Services shares are held by institutional investors. 24.0% of Primoris Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Primoris Services and Foster Wheeler’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primoris Services 2.68% 11.70% 5.04%
Foster Wheeler N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Primoris Services and Foster Wheeler, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primoris Services 0 3 2 0 2.40
Foster Wheeler 0 0 0 0 N/A

Primoris Services presently has a consensus target price of $31.00, suggesting a potential upside of 11.15%.

Summary

Primoris Services beats Foster Wheeler on 9 of the 10 factors compared between the two stocks.

Primoris Services Company Profile

Primoris Services Corporation is a holding company. The Company holds various subsidiaries, through which it operates as a specialty contractor and infrastructure company. The Company provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to public utilities, petrochemical companies, energy companies, municipalities, state departments of transportation and other customers. It operates in three segments: the West Construction Services segment (West segment), the East Construction Services segment (East segment) and the Energy segment. The Company installs, replaces, repairs and rehabilitates natural gas, refined product, water and wastewater pipeline systems; large diameter gas and liquid pipeline facilities, and heavy civil projects, earthwork and site development.

Foster Wheeler Company Profile

Foster Wheeler AG (Foster Wheeler) is a supplier of engineering, construction and project management contractor and power equipment. It operates through two business groups: Global Engineering and Construction Group (Global E&C Group), and Global Power Group. Its Global E&C Group, which operates worldwide, designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure. Its Global Power Group designs, manufactures and erects steam generators and auxiliary equipment for electric power generating stations, district heating and power plants and industrial facilities worldwide.In May 2014, the Company announced that a subsidiary of its Global Power Group acquired Siemens Environmental Systems and Services business.

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