Critical Review: Gulf Island Fabrication (GIFI) versus The Competition

Gulf Island Fabrication (NASDAQ:GIFI) is one of 177 public companies in the “Energy Equipment & Services” industry, but how does it compare to its rivals? We will compare Gulf Island Fabrication to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.

Insider and Institutional Ownership

46.4% of Gulf Island Fabrication shares are held by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 20.1% of Gulf Island Fabrication shares are held by company insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Gulf Island Fabrication has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Gulf Island Fabrication’s rivals have a beta of 0.82, suggesting that their average share price is 18% less volatile than the S&P 500.

Dividends

Gulf Island Fabrication pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Gulf Island Fabrication pays out 7.3% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of -7.2% and pay out -136.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for Gulf Island Fabrication and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulf Island Fabrication	0	1	0	0	2.00
Gulf Island Fabrication Competitors	1676	6833	8618	489	2.45

As a group, “Energy Equipment & Services” companies have a potential upside of 39.81%. Given Gulf Island Fabrication’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Gulf Island Fabrication has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Gulf Island Fabrication and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gulf Island Fabrication	$166.77 million	$14.74 million	21.82
Gulf Island Fabrication Competitors	$3.27 billion	$29.73 million	12.69

Gulf Island Fabrication’s rivals have higher revenue and earnings than Gulf Island Fabrication. Gulf Island Fabrication is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Gulf Island Fabrication and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gulf Island Fabrication	5.46%	11.60%	7.92%
Gulf Island Fabrication Competitors	-10.64%	7.40%	1.47%

Summary

Gulf Island Fabrication rivals beat Gulf Island Fabrication on 9 of the 15 factors compared.

Gulf Island Fabrication Company Profile

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. It operates through Services, Fabrication, and Shipyard divisions. The company provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, and other specialty services on offshore platforms, inland structures, and industrial facilities; services required to connect production equipment and service modules, and equipment on offshore platforms; project management and commissioning services; hookup services; and civil construction and staffing services to the industrial and energy sectors, as well as undertakes municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. It also fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. In addition, the company fabricates newbuild marine vessels and provides marine repair and maintenance services. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was incorporated in 1985 and is headquartered in The Woodlands, Texas.