Chicago Bridge & Iron Company N.V. (NYSE: CBI) and The Shaw Group (NYSE:SHAW) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Chicago Bridge & Iron Company N.V. pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. The Shaw Group does not pay a dividend. Chicago Bridge & Iron Company N.V. pays out -2.7% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Chicago Bridge & Iron Company N.V. and The Shaw Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Chicago Bridge & Iron Company N.V.||$10.68 billion||0.16||-$313.16 million||($10.53)||-1.57|
|The Shaw Group||N/A||N/A||N/A||$3.25||N/A|
The Shaw Group has higher revenue, but lower earnings than Chicago Bridge & Iron Company N.V.. Chicago Bridge & Iron Company N.V. is trading at a lower price-to-earnings ratio than The Shaw Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Chicago Bridge & Iron Company N.V. and The Shaw Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chicago Bridge & Iron Company N.V.||2||7||5||0||2.21|
|The Shaw Group||0||0||0||0||N/A|
Chicago Bridge & Iron Company N.V. currently has a consensus target price of $19.62, indicating a potential upside of 18.38%.
This table compares Chicago Bridge & Iron Company N.V. and The Shaw Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chicago Bridge & Iron Company N.V.||-13.33%||-10.86%||-2.04%|
|The Shaw Group||N/A||N/A||N/A|
Insider and Institutional Ownership
66.2% of Chicago Bridge & Iron Company N.V. shares are held by institutional investors. 1.1% of Chicago Bridge & Iron Company N.V. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Chicago Bridge & Iron Company N.V. beats The Shaw Group on 6 of the 10 factors compared between the two stocks.
About Chicago Bridge & Iron Company N.V.
Chicago Bridge & Iron Company N.V. provides services to customers in energy infrastructure market. The Company provides services, such as conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services. Its Engineering and Construction segment provides engineering, procurement, and construction (EPC) services. Its Fabrication Services segment provides fabrication and erection of steel plate structures; fabrication of piping systems and process modules, and manufacturing and distribution of pipe and fittings. The Technology segment provides process technology licenses and associated engineering services, and catalysts, for petrochemical and refining industries, and offers process planning and project development services.
About The Shaw Group
The Shaw Group Inc. (Shaw) is a provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to a diverse client base that includes multinational and national oil companies and industrial corporations, regulated utilities, independent and merchant power producers, and government agencies. The Company has developed and acquired intellectual property, including induction pipe bending technology and environmental decontamination technologies. Its segments include Power, Plant Services, Environmental & Infrastructure (E&I), Fabrication & Manufacturing (F&M), Energy & Chemicals (E&C) Segment, Investment in Westinghouse, and Corporate segment. Effective August 31, 2012, the Company completed the divestiture of its Energy & Chemicals business to Technip. On January 4, 2013, TOSHIBA CORP acquired a 20% stake in Westinghouse from Shaw Group Inc.
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