Financial Review: Larsen & Toubro (OTCMKTS:LTOUF) and Bird Construction (OTCMKTS:BIRDF)

Bird Construction (OTCMKTS:BIRDF) and Larsen & Toubro (OTCMKTS:LTOUF) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

45.3% of Bird Construction shares are owned by institutional investors. Comparatively, 1.1% of Larsen & Toubro shares are owned by institutional investors. 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.

Profitability

This table compares Bird Construction and Larsen & Toubro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bird Construction	N/A	N/A	N/A
Larsen & Toubro	N/A	N/A	N/A

Dividends

Bird Construction pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. Larsen & Toubro pays an annual dividend of $13.09 per share and has a dividend yield of 36.4%. 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. Larsen & Toubro pays out 22.3% of its earnings in the form of a dividend. Larsen & Toubro is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Bird Construction and Larsen & Toubro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bird Construction	0	1	1	0	2.50
Larsen & Toubro	0	0	0	0	0.00

Bird Construction presently has a consensus target price of $30.00, suggesting a potential upside of 124.89%. Given Bird Construction’s stronger consensus rating and higher probable upside, equities analysts plainly believe Bird Construction is more favorable than Larsen & Toubro.

Earnings and Valuation

This table compares Bird Construction and Larsen & Toubro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bird Construction	N/A	N/A	N/A	$0.68	19.52
Larsen & Toubro	N/A	N/A	N/A	$58.73	0.61

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

Summary

Bird Construction beats Larsen & Toubro on 5 of the 8 factors compared between the two stocks.

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.

About Larsen & Toubro

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and minerals, and metals. The Hydrocarbon segment provides front-end design, modular fabrication, procurement, project management, construction, installation, and commissioning for the oil and gas industry. The Power segment offers coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages. The Heavy Engineering segment manufactures and supplies custom designed, engineered critical equipment and systems to the fertilizer, refinery, petrochemical, chemical, oil and gas, and thermal and nuclear power industries. The Defence Engineering segment designs, develops, produces, and supports equipment, systems, and platforms for the defense and aerospace sectors. This segment also designs, constructs, and repairs/refits defense vessels. The Others segment engages in the realty, smart world, and communication businesses, including military communications; marketing and servicing of construction and mining machinery and parts; and manufacturing and sale of rubber processing machinery. This segment also operates digital platforms, such as SuFin for B2B e-commerce; and EduTech offers engineering and technology related content. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.