Comparing ChampionX (NASDAQ:CHX) & KBR (NYSE:KBR)

KBR (NYSE:KBR) and ChampionX (NASDAQ:CHX) are both mid-cap construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Profitability

This table compares KBR and ChampionX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KBR	4.52%	33.65%	7.33%
ChampionX	8.20%	19.25%	10.25%

Volatility & Risk

KBR has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, ChampionX has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Institutional & Insider Ownership

97.0% of KBR shares are owned by institutional investors. Comparatively, 99.0% of ChampionX shares are owned by institutional investors. 1.1% of KBR shares are owned by insiders. Comparatively, 1.5% of ChampionX shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares KBR and ChampionX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KBR	$7.74 billion	0.83	$375.00 million	$2.76	18.07
ChampionX	$3.63 billion	1.36	$320.27 million	$1.51	17.09

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for KBR and ChampionX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBR	0	5	4	0	2.44
ChampionX	0	0	2	0	3.00

KBR currently has a consensus target price of $62.7778, indicating a potential upside of 25.89%. ChampionX has a consensus target price of $40.00, indicating a potential upside of 54.98%. Given ChampionX’s stronger consensus rating and higher probable upside, analysts clearly believe ChampionX is more favorable than KBR.

Dividends

KBR pays an annual dividend of $0.66 per share and has a dividend yield of 1.3%. ChampionX pays an annual dividend of $0.38 per share and has a dividend yield of 1.5%. KBR pays out 23.9% of its earnings in the form of a dividend. ChampionX pays out 25.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. KBR has increased its dividend for 6 consecutive years and ChampionX has increased its dividend for 2 consecutive years.

Summary

ChampionX beats KBR on 9 of the 17 factors compared between the two stocks.

About KBR

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to the defense, renewable energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. This segment also provides synergistic services, including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions; high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization; and digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.

About ChampionX

ChampionX Corporation provides chemistry solutions, artificial lift systems, and engineered equipment and technologies to oil and gas companies worldwide. The company operates through four segments: Production Chemical Technologies, Production & Automation Technologies, Drilling Technologies, and Reservoir Chemical Technologies. The Production Chemical Technologies segment offers onshore, offshore, and oil sands chemical solutions, such as corrosion inhibitors, scale inhibitors, emulsion breakers, and biocides to oil and natural gas production and midstream markets to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment, and water-related issues. The Production & Automation Technologies segment provides artificial lift equipment, end-to-end digital automation solutions, and other production equipment and emissions monitoring solutions, including electrical submersible pumping systems, gas lift systems, jet pumps, multiplex surface pumps, plunger lift equipment, progressive cavity pumping systems, downhole rod lift systems, methane emissions monitoring solutions, chemical injection systems, flow control valves, and gauges under the Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, and Windrock brands. The Drilling Technologies segment offers polycrystalline diamond cutter inserts, bearings, valves, nozzles, and mining tools used in oil and gas drill bits under the US Synthetic brand; and high-density ceramic roof bolt mining tools for underground mining operations. The Reservoir Chemical Technologies segment provides chemistry-oriented solutions and technologies for well drilling, cementing, fracturing, acidizing, and other well interventions, as well as fracturing, drilling, cementing, acidizing additives. The company was founded in 1882 and is headquartered in The Woodlands, Texas.