Bird Construction (OTCMKTS:BIRDF) and Técnicas Reunidas (OTCMKTS:TNISF) Financial Review

Técnicas Reunidas (OTCMKTS:TNISF) and Bird Construction (OTCMKTS:BIRDF) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Técnicas Reunidas and Bird Construction, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Técnicas Reunidas	0	0	0	0	0.00
Bird Construction	0	0	2	0	3.00

Bird Construction has a consensus price target of $25.25, suggesting a potential upside of 40.43%. Given Bird Construction’s stronger consensus rating and higher possible upside, analysts plainly believe Bird Construction is more favorable than Técnicas Reunidas.

Profitability

This table compares Técnicas Reunidas and Bird Construction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Técnicas Reunidas	N/A	N/A	N/A
Bird Construction	N/A	N/A	N/A

Insider and Institutional Ownership

30.7% of Técnicas Reunidas shares are held by institutional investors. Comparatively, 45.3% of Bird Construction shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Técnicas Reunidas and Bird Construction”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Técnicas Reunidas	N/A	N/A	N/A	$2.34	4.88
Bird Construction	N/A	N/A	N/A	$0.68	26.30

Técnicas Reunidas is trading at a lower price-to-earnings ratio than Bird Construction, indicating that it is currently the more affordable of the two stocks.

Dividends

Técnicas Reunidas pays an annual dividend of $1.10 per share and has a dividend yield of 9.7%. Bird Construction pays an annual dividend of $0.76 per share and has a dividend yield of 4.2%. Técnicas Reunidas pays out 47.1% of its earnings in the form of a dividend. Bird Construction pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Técnicas Reunidas is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Bird Construction beats Técnicas Reunidas on 5 of the 8 factors compared between the two stocks.

About Técnicas Reunidas

Técnicas Reunidas, S.A., an engineering and construction company, designs and manages industrial plant projects worldwide. It operates through Oil and Gas, Power, and Other Industries segments. The Oil and Gas segment offers engineering, procurement, and construction services in oil processing operations, and chemical production and processing operations; services related to the natural gas production and extraction value chain, such as production, processing, storage, and transportation; constructs, revamps, and expands refining plants; designs and builds auxiliary services and other refining units; and designs and constructs monomers, polymers and plastics, chemical, and fertilizer producing and processing plants. The Power segment provides consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated plants with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste plants, and biomass technology plants, as well as plant operation and maintenance services; and supplies turnkey plants. The Other Industries segment undertakes projects in various areas that include airports, industrial facilities, and desalination and water treatment plants, as well as projects for public authorities and other organizations, including management of car parks and sports centers. Técnicas Reunidas, S.A. is also involved in the real estate development, commercial development, and machinery wholesale business; and technical assistance, construction supervision, project management, technical management, and start-up and training activities. The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972. Técnicas Reunidas, S.A. was incorporated in 1960 and is based in Madrid, Spain.

About Bird Construction

Bird Construction Inc. provides construction services in Canada. The company primarily focuses on projects in the industrial, and institutional, and infrastructure markets. It constructs large, complex industrial buildings, including manufacturing, processing, distribution, and warehouse facilities; and provides electrical and instrumentation, high voltage testing and commissioning services, as well as power line construction, structural, mechanical, and piping, including off-site metal and modular fabrication. It also engages in the civil construction operations, such as site preparation and earthworks, underground piping, utilities and foundation, drilling, blasting, and other concrete services, as well as contract mining, mine support, and greenfield and brownfield hydroelectric facilities; steel modular construction; and civil infrastructure operations comprising road, bridge, rail, and underground utilities installation. In addition, it constructs and retrofits institutional facilities, include healthcare facilities, post-secondary education facilities, K-12 schools, public safety and defence facilities, recreation facilities, transportation, courthouses, government buildings, and long term care and senior housing facilities; offers industrial maintenance, repair, and operations services; and constructs new construction and retrofit of warehousing, laboratories, manufacturing and processing facilities, data centers, office buildings, retail spaces, film studio infrastructure, hotels, and mixed-use mid- to high-rise residential buildings. Further, it offers electrical and related system services, such as electrical and mechanical infrastructure design and installation, data communications, telecommunications, security, and lifecycle services. It serves oil and gas, chemicals, liquefied natural gas, natural resources, nuclear, power, renewable energy, and water and wastewater sectors. The company was founded in 1920 and is based in Mississauga, Canada.