Arcosa, Inc. (ACA) vs IES Holdings, Inc. (IESC)

Arcosa, Inc. and IES Holdings, Inc. are both Engineering & Construction companies. IES Holdings, Inc. is the larger, with a market value of $12.8B against $7.2B — 1.8× the size. Arcosa, Inc. trades at the lower P/E: 14.7× against 28.4×. IES Holdings, Inc. grew revenue faster over the last twelve months: 22.7% against 16.7%. Arcosa, Inc. has the higher net margin (16.8% vs 11.4%) and the lower return on invested capital (5.49% vs 36.6%). Across the 22 metrics below, Arcosa, Inc. leads on 12 and IES Holdings, Inc. on 10.

Valuation

Metric ACA IESC Engineering & Construction median
P/E 14.66 28.41 28.59
P/S 2.47 3.24 1.15
P/B 2.41 10.51 3.96
Price to free cash flow 38.23 56.36 25.24
EV/EBITDA 14.17 22.82 14.87
EV/Sales 2.81 3.16 1.42
Earnings yield 6.82% 3.52% 2.47%
Free cash flow yield 2.62% 1.77% 1.91%

Profitability

Metric ACA IESC Engineering & Construction median
Gross margin 22.80% 26.31% 18.76%
Operating margin 12.00% 12.37% 6.26%
Net margin 16.84% 11.40% 2.23%
Free cash flow margin 6.45% 5.75% 1.83%
Return on equity 17.90% 45.20% 7.90%
Return on assets 9.53% 24.26% 0.87%
Return on invested capital 5.49% 36.61% 2.52%

Growth

Metric ACA IESC Engineering & Construction median
Revenue growth (TTM) 16.67% 22.66% 16.67%
EPS growth (last fiscal year) 121.99% 51.87% —
Revenue growth, 5-year CAGR 8.30% 23.14% 11.76%
Net income growth, 5-year CAGR 14.35% 49.32% 0.00%

Health

Metric ACA IESC Engineering & Construction median
Debt to equity 0.48 0.00 0.40
Current ratio 3.12 1.63 1.39
Net debt to EBITDA 2.32 (0.54) 0.38

Dividend

Metric ACA IESC Engineering & Construction median
Dividend yield 0.24% — 0.65%
Payout ratio 0.03 0.00 0.00

Size

Metric ACA IESC Engineering & Construction median
Market cap 7.20b 12.77b 1.31b

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