Arcadis (OTCMKTS:ARCAY) & KBR (NYSE:KBR) Head-To-Head Survey

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBR	0	7	5	0	2.42
Arcadis	0	1	0	0	2.00

KBR currently has a consensus price target of $58.00, suggesting a potential upside of 44.14%. Given KBR’s stronger consensus rating and higher possible upside, equities research analysts clearly believe KBR is more favorable than Arcadis.

Dividends

KBR pays an annual dividend of $0.66 per share and has a dividend yield of 1.6%. Arcadis pays an annual dividend of $0.96 per share and has a dividend yield of 2.3%. KBR pays out 22.7% of its earnings in the form of a dividend. KBR has raised its dividend for 6 consecutive years.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KBR	$7.74 billion	0.66	$375.00 million	$2.91	13.83
Arcadis	$4.20 billion	0.88	$262.95 million	N/A	N/A

KBR has higher revenue and earnings than Arcadis.

Volatility and Risk

KBR has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Arcadis has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KBR	4.71%	35.14%	7.63%
Arcadis	N/A	N/A	N/A

Insider & Institutional Ownership

97.0% of KBR shares are held by institutional investors. 1.1% of KBR shares are held by insiders. Comparatively, 1.0% of Arcadis shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

KBR beats Arcadis on 12 of the 15 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 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.