I run my ruler over both companies reguarly. Many similarities...

I run my ruler over both companies reguarly. Many similarities but also significant differences.

Similarities.
1) Both have excellent top management.
2) Both have rigid systems and business model that must be adhered to.
3) Both are extremely risk adverse. They don't even tender unless the project fits with their expertise. Any tender that is submitted has gone through extreme risk analysis process that examines almost every conceivable scenario. They would much rather lose a job to the opposition than take on something that may not produce a profit.
4) If tender is won their management have tight formulae to work with. Stepping outside these parameters is simplynot permitted.
5) Every tender/recent contract has built in allowance for any extra cost incurred by the construction company.
6) have reduced badt debtors considerably.
7) Only accept work with large BHP type companies or govt bodies. Hence, will get paid.
8) Isist on getting paid as each step of project is completed.
9) Both have massive work-on-hand over next 3+yrs.
10) Both have scores of tenders submitted at any one time and can win new work on almost a fortnightly basis.
11) Bothare rubbing their hands in anticipation of Rudds 22Billion infrastructure projects due to be announced next month.
12) Both have a real knack at winning govt tenders. Know the system inside-out.


Differences.
1) per capita UGLhave far lower debt.
2) UGL have lower exposure to adverse change in AUD rate.
3) UGL do far more maintanancetype workwith recurring income.
4) UGL have less capital tied up in huge fleets of trucks, earthmovers etc.
5) UGL have diverse spread of shareholders. 55% of LEI is owned by single construction giant that is at risk of going bust.
6) LEI invested big in Dubaia. Dubai dosen't produce a drop of oil and very high risk IMO.
7)LEI is THE king of projects worth 2.5Billion+ here in Oz. nevertheless, UGL regularly win subcontracts from LEI. todays 620m ann is a perfect example.
8) LEI have huge power as the 600lb gorilla. Hence, they demand higher margins than UGL. But that is largely because LEI has far higher debt levels than UGL. hence, UGL margins are low in comparison. The means UGL has room to increase margins without big risk of LEI pipping them at-the-post.
9)UGL moving away from resources and now only 8% of their order book.
10) UGL pay far higher divs and have lower PE.

I hold both companies but am waaaay loaded towards UGL. What other similarities/differences can HCreaders think of??