Reviewing Babcock International Group (OTCMKTS:BCKIF) & Bilfinger (OTCMKTS:BFLBY)

Babcock International Group (OTCMKTS:BCKIF) and Bilfinger (OTCMKTS:BFLBY) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Babcock International Group and Bilfinger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Babcock International Group	N/A	N/A	N/A
Bilfinger	N/A	N/A	N/A

Insider and Institutional Ownership

40.5% of Babcock International Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Babcock International Group and Bilfinger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Babcock International Group	0	1	2	0	2.67
Bilfinger	0	0	1	0	3.00

Babcock International Group presently has a consensus target price of $480.00, indicating a potential upside of 7,239.45%. Given Babcock International Group’s higher probable upside, equities research analysts plainly believe Babcock International Group is more favorable than Bilfinger.

Dividends

Babcock International Group pays an annual dividend of $0.22 per share and has a dividend yield of 3.4%. Bilfinger pays an annual dividend of $0.40 per share and has a dividend yield of 4.7%. Babcock International Group pays out 49.8% of its earnings in the form of a dividend. Bilfinger pays out -130.7% 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. Bilfinger is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Babcock International Group and Bilfinger’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Babcock International Group	N/A	N/A	N/A	$0.45	14.49
Bilfinger	N/A	N/A	N/A	($0.31)	-27.84

Bilfinger is trading at a lower price-to-earnings ratio than Babcock International Group, indicating that it is currently the more affordable of the two stocks.

Summary

Babcock International Group beats Bilfinger on 5 of the 8 factors compared between the two stocks.

About Babcock International Group

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment. The company also offers naval architecture, engineering, and project management services; submarines and complex engineering services in support of various decommissioning programs and projects, training and operation support, new build program management, and design and installation; critical vehicle fleet management, and equipment support and training services for military and civil customers; and designs, assesses, manufactures, installs, maintains, and decommissions vehicles for police, fire and ambulance, civil service, military, and other security-focused organizations. In addition, it provides plain line track renewal services; and engineering services for track projects, signaling, telecommunications, and on-track plants. Further, the company offers critical engineering services to defense and civil customers, including pilot training, equipment support, and airbase management, as well as operates aviation fleets that provide delivering emergency services. The company was founded in 1891 and is headquartered in London, the United Kingdom.

About Bilfinger

Bilfinger SE provides industrial services to customers in the process industry primarily in Europe, North America, and the Middle East. The company offers engineering, project, maintenance, turnaround, rotating equipment, and inspection services. It also provides new construction and decommissioning of nuclear power plants, treatment of radioactive waste, and nuclear fusion services. In addition, the company offers energy efficiency, carbon capture, utilization, and storage; and hydrogen, hydropower, and wind power services. Further, it provides design and engineering, plant engineering and assembly, operation and optimization, bilfinger connected asset performance, and mobile and web application services. It serves customers in energy, chemicals and petrochemicals, pharma and biopharma, and oil and gas industries. The company was founded in 1880 and is headquartered in Mannheim, Germany.