Babcock International Group (OTCMKTS:BCKIF) & Eiffage (OTCMKTS:EFGSY) Critical Review

Eiffage (OTCMKTS:EFGSY) and Babcock International Group (OTCMKTS:BCKIF) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Earnings & Valuation

This table compares Eiffage and Babcock International Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eiffage	N/A	N/A	N/A	$0.60	31.80
Babcock International Group	N/A	N/A	N/A	$0.45	14.24

Babcock International Group is trading at a lower price-to-earnings ratio than Eiffage, indicating that it is currently the more affordable of the two stocks.

Dividends

Eiffage pays an annual dividend of $0.15 per share and has a dividend yield of 0.8%. Babcock International Group pays an annual dividend of $0.22 per share and has a dividend yield of 3.5%. Eiffage pays out 25.4% of its earnings in the form of a dividend. Babcock International Group pays out 49.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Eiffage and Babcock International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eiffage	N/A	N/A	N/A
Babcock International Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Eiffage and Babcock International Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eiffage	0	1	1	0	2.50
Babcock International Group	0	1	2	0	2.67

Babcock International Group has a consensus target price of $480.00, suggesting a potential upside of 7,365.01%. Given Babcock International Group’s stronger consensus rating and higher possible upside, analysts plainly believe Babcock International Group is more favorable than Eiffage.

Institutional & Insider Ownership

40.5% of Babcock International Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Babcock International Group beats Eiffage on 5 of the 8 factors compared between the two stocks.

About Eiffage

Eiffage SA engages in the construction, property development, urban development, civil engineering, metallic construction, roads, energy systems, and concessions businesses in France and internationally. The company operates through Construction, Infrastructure, Energy Systems, Concessions, and Holding Company segments. The Construction segment offers urban development, building design and construction, property development, and maintenance and facilities management services. The Infrastructure segment is involved in undertaking civil engineering, road and rail design and construction, drainage, earthworks, and metallic construction. The Energy Systems segment designs, constructs, integrates, operates, and maintains energy and telecommunication systems and equipment. The Concessions segment constructs and manages concession contracts and public-private partnerships. The company was founded in 1844 and is based in Vélizy-Villacoublay, France.

About Babcock International Group

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment. The company also offers naval architecture, engineering, and project management services; submarines and complex engineering services in support of various decommissioning programs and projects, training and operation support, new build program management, and design and installation; critical vehicle fleet management, and equipment support and training services for military and civil customers; and designs, assesses, manufactures, installs, maintains, and decommissions vehicles for police, fire and ambulance, civil service, military, and other security-focused organizations. In addition, it provides plain line track renewal services; and engineering services for track projects, signaling, telecommunications, and on-track plants. Further, the company offers critical engineering services to defense and civil customers, including pilot training, equipment support, and airbase management, as well as operates aviation fleets that provide delivering emergency services. The company was founded in 1891 and is headquartered in London, the United Kingdom.