Critical Analysis: Orion Group (NYSE:ORN) and Ferrovial (NASDAQ:FER)

Orion Group (NYSE:ORN) and Ferrovial (NASDAQ:FER) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Orion Group and Ferrovial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Group	0	0	2	0	3.00
Ferrovial	0	0	1	0	3.00

Orion Group currently has a consensus price target of $13.25, indicating a potential upside of 130.03%. Ferrovial has a consensus price target of $48.00, indicating a potential upside of 11.14%. Given Orion Group’s higher possible upside, research analysts clearly believe Orion Group is more favorable than Ferrovial.

Insider & Institutional Ownership

70.3% of Orion Group shares are owned by institutional investors. 7.3% of Orion Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Orion Group and Ferrovial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Group	-2.45%	-4.81%	-1.45%
Ferrovial	N/A	N/A	N/A

Earnings and Valuation

This table compares Orion Group and Ferrovial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Group	$722.91 million	0.26	-$17.88 million	($0.35)	-16.46
Ferrovial	$8.84 billion	3.62	N/A	N/A	N/A

Ferrovial has higher revenue and earnings than Orion Group.

Summary

Ferrovial beats Orion Group on 5 of the 9 factors compared between the two stocks.

About Orion Group

Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the United States, Alaska, Hawaii, Canada, and the Caribbean Basin. It operates in two segments, Marine and Concrete. The company provides marine construction services, including construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility projects comprise cruise ship port facilities, private terminals, special-use navy terminals, recreational use marinas and docks, and other marine-based facilities, as well as building or rehabilitating public port facilities for container ship loading and unloading. The company also offers on-going maintenance and repair, inspection, emergency repair, and demolition and salvage services. Its marine pipeline service projects include the installation and removal of underwater buried pipeline transmission lines; the installation of pipeline intakes and outfalls for industrial facilities; the construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; the creation of hot taps and tie-ins; and inspection, maintenance, and repair services. The company's bridge and causeway projects include the construction, repair, and maintenance of overwater bridges and causeways, as well as the develops fendering systems in marine environments. The company also provides specialty services, such as design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair services. In addition, it offers elevated concrete pouring for columns, elevated beams, and structural walls; and light commercial services comprising slabs, sidewalks, ramps, and tilt walls. The company was founded in 1994 and is headquartered in Houston, Texas.

About Ferrovial

Ferrovial SE, together with its subsidiaries, engages in the design, construction, financing, operation, and maintenance of transport infrastructure and urban services internationally. It operates through four segments: Construction, Toll Roads, Airports, and Energy Infrastructures and Mobility. The company designs and executes various public and private works, including the construction of public infrastructure; and develops, finances, and operates toll roads. It also develops, finances, and operates airports; and develops, finances, and operates power transmission lines and renewable energy generation plants, as well as offers mobility and waste management plants and services to the mining industry in Chile. In addition, the company promotes, constructs, and operates energy generation and transmission infrastructures. The company was founded in 1952 and is based in Amsterdam, the Netherlands.