Arcosa, Inc. (ACA) vs AECOM (ACM)

Arcosa, Inc. and AECOM are both Engineering & Construction companies. Arcosa, Inc. and AECOM are of similar size ($7.7B and $7.2B). Arcosa, Inc. trades at the lower P/E: 14.7× against 27.6×. Arcosa, Inc. grew revenue faster over the last twelve months: 16.7% against −4.24%. Arcosa, Inc. has the higher net margin (16.8% vs 1.87%) and the lower return on invested capital (5.49% vs 9.62%). Both pay a dividend; AECOM yields more (0.40% vs 0.24%). Across the 23 metrics below, Arcosa, Inc. leads on 17 and AECOM on 6.

Valuation

Metric ACA ACM Engineering & Construction median
P/E 14.66 27.55 28.59
P/S 2.47 0.51 1.15
P/B 2.41 3.26 3.96
Price to free cash flow 38.23 38.42 25.24
EV/EBITDA 14.17 11.26 14.87
EV/Sales 2.81 0.62 1.42
Earnings yield 6.82% 3.63% 2.47%
Free cash flow yield 2.62% 2.60% 1.91%

Profitability

Metric ACA ACM Engineering & Construction median
Gross margin 22.80% 5.68% 18.76%
Operating margin 12.00% 4.10% 6.26%
Net margin 16.84% 1.87% 2.23%
Free cash flow margin 6.45% 1.32% 1.83%
Return on equity 17.90% 11.30% 7.90%
Return on assets 9.53% 2.37% 0.87%
Return on invested capital 5.49% 9.62% 2.52%

Growth

Metric ACA ACM Engineering & Construction median
Revenue growth (TTM) 16.67% (4.24%) 16.67%
EPS growth (last fiscal year) 121.99% 42.71% —
Revenue growth, 5-year CAGR 8.30% 4.04% 11.76%
Net income growth, 5-year CAGR 14.35% 0.00% 0.00%

Health

Metric ACA ACM Engineering & Construction median
Debt to equity 0.48 1.13 0.40
Current ratio 3.12 1.06 1.39
Net debt to EBITDA 2.32 0.93 0.38

Dividend

Metric ACA ACM Engineering & Construction median
Dividend yield 0.24% 0.40% 0.65%
Payout ratio 0.03 0.50 0.00

Size

Metric ACA ACM Engineering & Construction median
Market cap 7.20b 7.66b 1.31b

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