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

Arcosa, Inc. and AECOM are both Engineering & Construction companies. Arcosa, Inc. and AECOM are of similar size ($7.6B and $7.2B). Arcosa, Inc. trades at the lower P/E: 14.7× against 26.7×. 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 (2.10% vs 0.14%). Across the 23 metrics below, Arcosa, Inc. leads on 15 and AECOM on 8.

Valuation

Metric ACA ACM Engineering & Construction median
P/E 14.71 26.67 29.24
P/S 2.47 0.49 1.09
P/B 2.42 3.16 3.39
Price to free cash flow 38.35 37.19 24.81
EV/EBITDA 14.21 10.96 14.38
EV/Sales 2.82 0.60 1.37
Earnings yield 6.80% 3.75% 2.83%
Free cash flow yield 2.61% 2.69% 2.28%

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% 13.42%
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 0.14% 2.10% 0.63%
Payout ratio 0.02 0.57 0.17

Size

Metric ACA ACM Engineering & Construction median
Market cap 7.22b 7.60b 1.09b

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