Analyzing Fluor (NYSE:FLR) & Mayville Engineering (NYSE:MEC)

Fluor (NYSE:FLR) and Mayville Engineering (NYSE:MEC) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares Fluor and Mayville Engineering”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fluor	$16.32 billion	0.56	$2.15 billion	$10.43	5.36
Mayville Engineering	$581.60 million	0.58	$25.97 million	$1.08	15.38

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

Profitability

This table compares Fluor and Mayville Engineering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fluor	11.13%	14.59%	5.67%
Mayville Engineering	4.09%	9.30%	4.93%

Institutional & Insider Ownership

88.1% of Fluor shares are held by institutional investors. Comparatively, 45.4% of Mayville Engineering shares are held by institutional investors. 1.7% of Fluor shares are held by insiders. Comparatively, 7.2% of Mayville Engineering shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Fluor has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Mayville Engineering has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Fluor and Mayville Engineering, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fluor	0	4	4	0	2.50
Mayville Engineering	0	2	2	0	2.50

Fluor currently has a consensus target price of $54.43, suggesting a potential downside of 2.70%. Mayville Engineering has a consensus target price of $21.33, suggesting a potential upside of 28.48%. Given Mayville Engineering’s higher possible upside, analysts clearly believe Mayville Engineering is more favorable than Fluor.

Summary

Fluor beats Mayville Engineering on 9 of the 13 factors compared between the two stocks.

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.

About Mayville Engineering

Mayville Engineering Company, Inc., together with its subsidiaries, engages in the production, design, prototyping and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components in the United States. It also supplies engineered components to original equipment manufacturers. The company serves heavy and medium duty commercial vehicles, construction and access equipment, powersports, agriculture, military, and other end markets. Mayville Engineering Company, Inc. was founded in 1945 and is headquartered in Milwaukee, Wisconsin.