Financial Comparison: Gulf Island Fabrication (NASDAQ:GIFI) versus TechnipFMC (NYSE:FTI)

Gulf Island Fabrication (NASDAQ:GIFI) and TechnipFMC (NYSE:FTI) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gulf Island Fabrication and TechnipFMC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulf Island Fabrication	0	1	0	0	2.00
TechnipFMC	0	2	9	3	3.07

TechnipFMC has a consensus price target of $74.83, indicating a potential upside of 9.73%. Given TechnipFMC’s stronger consensus rating and higher possible upside, analysts plainly believe TechnipFMC is more favorable than Gulf Island Fabrication.

Earnings & Valuation

This table compares Gulf Island Fabrication and TechnipFMC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulf Island Fabrication	$166.77 million	1.15	$14.74 million	$0.55	21.82
TechnipFMC	$9.93 billion	2.69	$963.90 million	$2.88	23.68

TechnipFMC has higher revenue and earnings than Gulf Island Fabrication. Gulf Island Fabrication is trading at a lower price-to-earnings ratio than TechnipFMC, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.4% of Gulf Island Fabrication shares are owned by institutional investors. Comparatively, 96.6% of TechnipFMC shares are owned by institutional investors. 20.1% of Gulf Island Fabrication shares are owned by insiders. Comparatively, 1.4% of TechnipFMC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Gulf Island Fabrication pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. TechnipFMC pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Gulf Island Fabrication pays out 7.3% of its earnings in the form of a dividend. TechnipFMC pays out 6.9% 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. TechnipFMC has raised its dividend for 1 consecutive years.

Volatility and Risk

Gulf Island Fabrication has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Gulf Island Fabrication and TechnipFMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gulf Island Fabrication	5.46%	11.60%	7.92%
TechnipFMC	11.28%	36.54%	12.02%

Summary

TechnipFMC beats Gulf Island Fabrication on 16 of the 18 factors compared between the two stocks.

About Gulf Island Fabrication

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. It operates through Services, Fabrication, and Shipyard divisions. The company provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, and other specialty services on offshore platforms, inland structures, and industrial facilities; services required to connect production equipment and service modules, and equipment on offshore platforms; project management and commissioning services; hookup services; and civil construction and staffing services to the industrial and energy sectors, as well as undertakes municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. It also fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. In addition, the company fabricates newbuild marine vessels and provides marine repair and maintenance services. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was incorporated in 1985 and is headquartered in The Woodlands, Texas.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.