Comparing Fluor (NYSE:FLR) & Metallurgical Corp. of China (OTCMKTS:MLLUY)

Metallurgical Corp. of China (OTCMKTS:MLLUY) and Fluor (NYSE:FLR) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility and Risk

Metallurgical Corp. of China has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Fluor has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Metallurgical Corp. of China and Fluor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metallurgical Corp. of China	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. 1.7% of Fluor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Metallurgical Corp. of China and Fluor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metallurgical Corp. of China	$76.79 billion	N/A	$938.36 million	$0.73	8.08
Fluor	$16.32 billion	0.46	$2.15 billion	$24.27	1.92

Fluor has lower revenue, but higher earnings than Metallurgical Corp. of China. Fluor is trading at a lower price-to-earnings ratio than Metallurgical Corp. of China, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Metallurgical Corp. of China and Fluor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metallurgical Corp. of China	0	0	0	0	0.00
Fluor	0	6	4	0	2.40

Fluor has a consensus price target of $49.43, suggesting a potential upside of 5.86%. Given Fluor’s stronger consensus rating and higher possible upside, analysts clearly believe Fluor is more favorable than Metallurgical Corp. of China.

Summary

Fluor beats Metallurgical Corp. of China on 11 of the 13 factors compared between the two stocks.

About Metallurgical Corp. of China

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company’s Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing properties; and develops land. The company’s Equipment Manufacturing segment engages in the development and production of metallurgical equipment, steel structures, and other metal products. Its Resource Development segment is involved in the development, mining, and processing of mineral resources; and the production of nonferrous metals and polysilicon. The company was founded in 2008 and is based in Beijing, the People’s Republic of China.

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.