Head to Head Analysis: Fluor (NYSE:FLR) & Arcadis (OTCMKTS:ARCAY)

Arcadis (OTCMKTS:ARCAY) and Fluor (NYSE:FLR) are both mid-cap construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Volatility and Risk

Arcadis has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Fluor has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Profitability

This table compares Arcadis and Fluor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcadis	N/A	N/A	N/A
Fluor	25.35%	9.27%	4.06%

Institutional and Insider Ownership

88.1% of Fluor shares are held by institutional investors. 1.0% of Arcadis shares are held by insiders. Comparatively, 1.7% of Fluor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Arcadis and Fluor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcadis	0	0	0	2	4.00
Fluor	1	4	4	0	2.33

Fluor has a consensus target price of $49.57, indicating a potential upside of 19.44%. Given Fluor’s higher possible upside, analysts clearly believe Fluor is more favorable than Arcadis.

Valuation & Earnings

This table compares Arcadis and Fluor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcadis	$4.20 billion	1.01	$262.95 million	N/A	N/A
Fluor	$16.32 billion	0.41	$2.15 billion	$24.27	1.71

Fluor has higher revenue and earnings than Arcadis.

Summary

Fluor beats Arcadis on 10 of the 13 factors compared between the two stocks.

About Arcadis

Arcadis NV offers design, engineering, and consultancy solutions for natural and built assets in The Americas, Europe, the Middle East, and the Asia Pacific. It operates through Places, Mobility, Resilience, and Intelligence segments. The company offers architectural and urbanism services; and asset management services, such as asset management strategy and planning, asset management decision making and operational optimization, life cycle planning and asset management systems, asset information/condition assessment, risk and review, organization and people, and asset management/O&M. It also provides business advisory services, including asset strategy and performance, business transformation and resiliency, investment and finance, operations and maintenance, and technology and information; contract solutions; cost and commercial management services; and design and engineering solutions for highways, railways, bridges, tunnels, power utilities, water utilities, ports and waterways, geotechnics, architecture, and structures, as well as building mechanical, electrical, and plumbing. In addition, the company offers digital environmental health safety and sustainability, environmental restoration, and project management solutions. Further, it provides mobility solutions for connected highways, intelligent rail and transit, integrated airports, and new mobility; places solutions; resilience solutions, such as energy transition, climate adaption, water optimization, enviro socio permitting, sustainable advisory, environmental restoration, and sustainable operations; and water supply and treatment, distribution, resource management, and industrial water and wastewater services. The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997. Arcadis NV was founded in 1888 and is headquartered in Amsterdam, the Netherlands.

About Fluor

Fluor Corporation provides engineering, procurement, and construction (EPC); fabrication and modularization; operation and maintenance; asset integrity; and project management services worldwide. The company operates through Energy Solutions, Urban Solutions, Mission Solutions, and Other segments. The Energy Solutions segment provides solutions to the energy transition markets, including asset decarbonization, carbon capture, renewable fuels, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources. It also provides consulting services, including feasibility studies, process assessments, and project finance structuring; and a range of services for small modular reactor technologies, conventional and advanced nuclear reactor technologies. This segment serves the production and fuels, chemicals, LNG, power markets, chemicals and petrochemical industries. The Urban Solutions segment offers EPC and project management services to the infrastructure, advanced technologies, life sciences, and mining and metals industries. This segment also provides staffing services to the company and third-party clients with technical, professional, and craft resources on a contract or permanent placement basis. The Mission Solutions segment offers technical solutions to the U.S. and other governments. It also delivers solutions for nuclear security and operation, nuclear waste management, and laboratory management; and operation and maintenance, logistics, EPC, and life support solutions for mission-critical facilities across U.S. military service organizations. This segment offers site management, environmental remediation, and decommissioning for nuclear remediation at governmental facilities, as well as services to commercial nuclear clients. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.