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How Does Fluor Corporation Compare to Its Peers?

Gabriel Kane

Fluor Corporation Reports Mixed Quarterly Results for 3Q15

(Continued from Prior Part)

Fluor Corporation and its peers

In this article, we’ll compare Fluor Corporation with its peers on several measures:

  • The PE (price-to-earnings) ratios of Fluor Corporation (FLR), Jacobs Engineering Group (JEC), and Quanta Services (PWR) are 10.3x, 13.9x, and 17.6x, respectively.
  • The PBV (price-to-book value) ratios of FLR, JEC, AECOM (ACM), PWR, and KBR (KBR) are 2.2x, 1.1x, 1.3x, 1.0x, and 2.8x, respectively.

  • The price-to-sales ratios of FLR, JEC, ACM, PWR, and KBR are 0.33x, 0.40x, 0.28x, 0.51x, and 0.45x, respectively.

According to the above findings, FLR’s peers have outperformed it based on PE and price-to-sales ratios. However, FLA is way ahead of its peers based on PBV ratio.

ETFs that invest in Fluor Corporation

The First Trust ISE Global Construction and Engineering ETF (FLM) invests 3.0% of its holdings in Fluor Corporation. The ETF tracks an index of global construction and engineering companies weighted in tiers spanning the entire market cap spectrum.

The First Trust Industrials/Producer Durables AlphaDEX ETF (FXR) invests 1.7% of its holdings in FLR. The ETF tracks a quant-driven, tiered, equal-weighted index that selects US industrial stocks likely to outperform the sector.

The Guggenheim S&P Equal Weight Industrials ETF (RGI) invests 1.4% of its holdings in FLR. The ETF tracks an equal-weighted index of US industrial stocks drawn from the S&P 500.

The Guggenheim S&P 500 Pure Value ETF (RPV) invests 0.92% of its holdings in FLR. The ETF tracks an index of primarily large-cap, committee-selected US stocks. The index covers about 33% of the S&P 500’s market cap, using three factors to select value stocks.

Comparing Fluor Corporation and its ETFs

Now let’s compare Fluor Corporation with the ETFs that invest in it:

  • The YTD (year-to-date) price movements of FLR, FLM, FXR, RPV, and RGI are -22.3%, 3.4%, -9.1%, -4.7%, and -5.0%, respectively.
  • The PE ratios of FLR, FLM, FXR, RPV, and RGI are 10.3x, 15.7x, 14.8x, 26.5x, and 15.4x, respectively.
  • The PBV ratios of FLR, FLM, FXR, RPV, and RGI are 2.2x, 1.4x, 2.2x, 1.1x, and 3.0x, respectively.

According to the above findings, these ETFs have outperformed FLR on price movement and PE ratio. However, Fluor Corporation is way ahead of its ETFs based on PBV ratio.

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