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

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

Insider and Institutional Ownership

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

Dividends

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

Volatility & Risk

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

Profitability

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

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

Analyst Ratings

This is a summary of current ratings for TechnipFMC and Gulf Island Fabrication, as provided by MarketBeat.com.

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

TechnipFMC presently 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, equities analysts clearly believe TechnipFMC is more favorable than Gulf Island Fabrication.

Earnings & Valuation

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

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

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.

Summary

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

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.

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.