Arcosa, Inc. (ACA) vs Sterling Infrastructure, Inc. (STRL)

Arcosa, Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Sterling Infrastructure, Inc. is the larger, with a market value of $13.7B against $7.2B — 1.9× the size. Arcosa, Inc. trades at the lower P/E: 14.7× against 30.1×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against 16.7%. Arcosa, Inc. has the higher net margin (16.8% vs 12.6%) and the lower return on invested capital (5.49% vs 31.1%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 13 and Arcosa, Inc. on 9.

Valuation

Metric ACA STRL Engineering & Construction median
P/E 14.71 30.14 29.24
P/S 2.47 3.79 1.09
P/B 2.42 9.37 3.39
Price to free cash flow 38.35 26.68 24.81
EV/EBITDA 14.21 18.52 14.38
EV/Sales 2.82 3.74 1.37
Earnings yield 6.80% 3.32% 2.83%
Free cash flow yield 2.61% 3.75% 2.28%

Profitability

Metric ACA STRL Engineering & Construction median
Gross margin 22.80% 23.81% 18.76%
Operating margin 12.00% 17.52% 6.26%
Net margin 16.84% 12.55% 2.23%
Free cash flow margin 6.45% 14.20% 1.83%
Return on equity 17.90% 37.49% 7.90%
Return on assets 9.53% 16.11% 0.87%
Return on invested capital 5.49% 31.11% 2.52%

Growth

Metric ACA STRL Engineering & Construction median
Revenue growth (TTM) 16.67% 60.83% 16.67%
EPS growth (last fiscal year) 121.99% 13.42% 13.42%
Revenue growth, 5-year CAGR 8.30% 15.21% 11.76%
Net income growth, 5-year CAGR 14.35% 46.98% 0.00%

Health

Metric ACA STRL Engineering & Construction median
Debt to equity 0.48 0.20 0.40
Current ratio 3.12 1.11 1.39
Net debt to EBITDA 2.32 (0.21) 0.38

Dividend

Metric ACA STRL Engineering & Construction median
Dividend yield 0.14% — 0.63%
Payout ratio 0.02 — 0.17

Size

Metric ACA STRL Engineering & Construction median
Market cap 7.22b 13.65b 1.09b

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