Magnera (NYSE:MAGN) versus KBR (NYSE:KBR) Critical Comparison

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

Profitability

This table compares KBR and Magnera’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%
Magnera	-4.98%	-9.57%	-3.49%

Valuation & Earnings

This table compares KBR and Magnera”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KBR	$8.04 billion	0.66	$375.00 million	$2.91	14.34
Magnera	$3.20 billion	0.16	-$15.25 million	($7.64)	-1.90

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

Risk & Volatility

KBR has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBR	0	7	4	0	2.36
Magnera	1	0	2	0	2.33

KBR presently has a consensus target price of $59.00, indicating a potential upside of 41.35%. Magnera has a consensus target price of $15.50, indicating a potential upside of 6.90%. Given KBR’s stronger consensus rating and higher possible upside, equities research analysts clearly believe KBR is more favorable than Magnera.

Institutional and Insider Ownership

97.0% of KBR shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 1.1% of KBR shares are owned by insiders. Comparatively, 2.3% of Magnera shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

KBR beats Magnera on 12 of the 14 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 Magnera

Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.