Arcosa, Inc. (ACA) vs Jacobs Solutions Inc. (J)

Arcosa, Inc. and Jacobs Solutions Inc. are both Engineering & Construction companies. Jacobs Solutions Inc. is the larger, with a market value of $15.8B against $7.2B — 2.2× the size. Arcosa, Inc. trades at the lower P/E: 14.7× against 48.7×. Jacobs Solutions Inc. grew revenue faster over the last twelve months: 20.1% against 16.7%. Arcosa, Inc. has the higher net margin (16.8% vs 2.38%) and the lower return on invested capital (5.49% vs 7.19%). Both pay a dividend; Jacobs Solutions Inc. yields more (0.80% vs 0.24%). Across the 23 metrics below, Arcosa, Inc. leads on 15 and Jacobs Solutions Inc. on 8.

Valuation

Metric ACA J Engineering & Construction median
P/E 14.66 48.72 28.59
P/S 2.47 1.15 1.15
P/B 2.41 5.01 3.96
Price to free cash flow 38.23 25.10 25.24
EV/EBITDA 14.17 22.11 14.87
EV/Sales 2.81 1.37 1.42
Earnings yield 6.82% 2.05% 2.47%
Free cash flow yield 2.62% 3.98% 1.91%

Profitability

Metric ACA J Engineering & Construction median
Gross margin 22.80% 22.07% 18.76%
Operating margin 12.00% 4.57% 6.26%
Net margin 16.84% 2.38% 2.23%
Free cash flow margin 6.45% 4.56% 1.83%
Return on equity 17.90% 9.56% 7.90%
Return on assets 9.53% 2.92% 0.87%
Return on invested capital 5.49% 7.19% 2.52%

Growth

Metric ACA J Engineering & Construction median
Revenue growth (TTM) 16.67% 20.14% 16.67%
EPS growth (last fiscal year) 121.99% (62.34%) —
Revenue growth, 5-year CAGR 8.30% (2.38%) 11.76%
Net income growth, 5-year CAGR 14.35% (10.07%) 0.00%

Health

Metric ACA J Engineering & Construction median
Debt to equity 0.48 1.10 0.40
Current ratio 3.12 1.29 1.39
Net debt to EBITDA 2.32 0.91 0.38

Dividend

Metric ACA J Engineering & Construction median
Dividend yield 0.24% 0.80% 0.65%
Payout ratio 0.03 0.17 0.00

Size

Metric ACA J Engineering & Construction median
Market cap 7.20b 15.84b 1.31b

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