Head to Head Analysis: Fluor (NYSE:FLR) and APi Group (NYSE:APG)

APi Group (NYSE:APG) and Fluor (NYSE:FLR) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Institutional and Insider Ownership

86.6% of APi Group shares are owned by institutional investors. Comparatively, 88.1% of Fluor shares are owned by institutional investors. 18.7% of APi Group shares are owned by insiders. Comparatively, 1.7% of Fluor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares APi Group and Fluor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APi Group	$8.44 billion	1.99	$302.00 million	($0.67)	-57.89
Fluor	$15.54 billion	0.43	-$51.00 million	($12.28)	-4.06

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for APi Group and Fluor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APi Group	0	1	6	1	3.00
Fluor	1	3	4	0	2.38

APi Group presently has a consensus target price of $52.57, indicating a potential upside of 35.54%. Fluor has a consensus target price of $63.33, indicating a potential upside of 27.18%. Given APi Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe APi Group is more favorable than Fluor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APi Group	3.99%	37.59%	14.07%
Fluor	-12.85%	8.82%	3.57%

Volatility & Risk

APi Group has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Fluor has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Summary

APi Group beats Fluor on 12 of the 15 factors compared between the two stocks.

About APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

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.