Contrasting North American Construction Group (NOA) & Core Laboratories (CLB)

North American Construction Group (NYSE: NOA) and Core Laboratories (NYSE:CLB) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares North American Construction Group and Core Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
North American Construction Group 2.44% 5.20% 2.03%
Core Laboratories 13.24% 62.69% 16.15%

Institutional and Insider Ownership

35.7% of North American Construction Group shares are owned by institutional investors. 1.0% of Core Laboratories shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares North American Construction Group and Core Laboratories’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
North American Construction Group $225.58 million 0.69 $4.06 million $0.14 43.93
Core Laboratories $659.81 million 8.36 $83.12 million $2.00 62.40

Core Laboratories has higher revenue and earnings than North American Construction Group. North American Construction Group is trading at a lower price-to-earnings ratio than Core Laboratories, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

North American Construction Group has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Core Laboratories has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Dividends

North American Construction Group pays an annual dividend of $0.06 per share and has a dividend yield of 1.0%. Core Laboratories pays an annual dividend of $2.20 per share and has a dividend yield of 1.8%. North American Construction Group pays out 42.9% of its earnings in the form of a dividend. Core Laboratories pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. North American Construction Group has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for North American Construction Group and Core Laboratories, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
North American Construction Group 0 0 1 0 3.00
Core Laboratories 0 7 4 0 2.36

North American Construction Group currently has a consensus price target of $9.00, indicating a potential upside of 46.34%. Core Laboratories has a consensus price target of $113.49, indicating a potential downside of 9.06%. Given North American Construction Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe North American Construction Group is more favorable than Core Laboratories.

Summary

Core Laboratories beats North American Construction Group on 12 of the 17 factors compared between the two stocks.

About North American Construction Group

North American Energy Partners Inc., through its subsidiaries, provides a range of mining and heavy construction services to customers in the resource development and industrial construction sectors, primarily in Western Canada. The company offers construction and operations support services through various stages of an oil sands project's lifecycle. Its services include site clearing and access road construction; site development and underground utility installation; construction and relocation of mine site infrastructure; stripping, muskeg removal, and overburden removal; heavy equipment and labor supply; material hauling; and mine reclamation, and tailings pond construction and maintenance. The company also provides site development services for plants and refineries, including in situ oil sands facilities; and heavy and light civil construction services for various resource infrastructure projects. In addition, it offers heavy equipment maintenance services. Further, the company maintains a fleet of heavy and ancillary equipment for its maintenance and repair centers; and operates running maintenance and repair facilities at its oil sands mine sites. North American Energy Partners Inc. was founded in 1953 and is headquartered in Edmonton, Canada.

About Core Laboratories

Core Laboratories N.V. provides reservoir description, and production enhancement services and products to the oil and gas industry in the United States, Canada, and internationally. It operates in two segments, Reservoir Description and Production Enhancement segments. The Reservoir Description segment comprises the characterization of petroleum reservoir rock, fluid, and gas samples to enhance production and improve recovery of oil and gas from its clients' reservoirs. This segment offers laboratory-based analytical and field services to characterize properties of crude oil and petroleum products to the oil and gas industry. It also provides proprietary and joint industry studies. The Production Enhancement segment includes services and products relating to reservoir well completions, perforations, stimulations, and production. This segment offers integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions to improve the effectiveness of enhanced oil recovery projects. The company markets and sells its products through a combination of sales representatives, technical seminars, trade shows, and print advertising, as well as through distributors. Core Laboratories N.V. was founded in 1936 and is based in Amsterdam, the Netherlands.

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