Gibson Energy (OTCMKTS:GBNXF) and The Weir Group (OTCMKTS:WEGRY) Critical Analysis

The Weir Group (OTCMKTS:WEGRY) and Gibson Energy (OTCMKTS:GBNXF) are both construction companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Institutional & Insider Ownership

0.2% of Gibson Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

The Weir Group has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Gibson Energy has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Dividends

The Weir Group pays an annual dividend of $0.19 per share and has a dividend yield of 1.4%. Gibson Energy pays an annual dividend of $1.21 per share and has a dividend yield of 7.4%. Gibson Energy pays out 127.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares The Weir Group and Gibson Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Weir Group	N/A	N/A	N/A
Gibson Energy	1.72%	22.45%	4.13%

Analyst Ratings

This is a summary of current ratings for The Weir Group and Gibson Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Weir Group	0	0	0	2	4.00
Gibson Energy	0	0	0	1	4.00

Valuation and Earnings

This table compares The Weir Group and Gibson Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Weir Group	$3.28 billion	N/A	$283.48 million	N/A	N/A
Gibson Energy	$8.16 billion	0.33	$158.69 million	$0.95	17.29

The Weir Group has higher earnings, but lower revenue than Gibson Energy.

Summary

Gibson Energy beats The Weir Group on 6 of the 10 factors compared between the two stocks.

About The Weir Group

The Weir Group PLC produces and sells highly engineered original equipment worldwide. It operates in two segments, Minerals and ESCO. The Minerals segment offers engineering, manufacturing, and service processing technology for the use in abrasive high-wear mining applications; and differentiated technology for the use in infrastructure and general industrial markets. The ESCO segment provides ground engaging tools for large mining machines. This segment also offers cloud-based Artificial Intelligence solutions to the mining industry; manufactures and distributes highly engineered wear parts; and offers aftermarket services to the mining industry. The company offers its products under the Accumin, All-Cast, Aspir, Bucyrus Blades, Carbide Plus, Cavex, Delta Industrial, Enduron, ESCO, EverSharp, GEHO, GeoVor, Infinity, Isogate, Kwik-Lok, Lewis, Linacure, Linagard, Linard, Linatex, Loadmaster, MaxTemp, Motion Metrics, Multiflo, Nemisys, Posilok, Production Master, ProFill, Sand,aster, Super V, SV2, Synertrex, TopLock, Trio, UltraEdge, Ultrlok, Uni-Lok, Vulco, Warman, and Whisler Plus brands. The Weir Group PLC was founded in 1871 and is headquartered in Glasgow, the United Kingdom.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.