Arcosa, Inc. (ACA) vs Tetra Tech, Inc. (TTEK)

Arcosa, Inc. and Tetra Tech, Inc. are both Engineering & Construction companies. Tetra Tech, Inc. is the larger, with a market value of $8.6B against $7.2B — 1.2× the size. Arcosa, Inc. trades at the lower P/E: 14.7× against 20.3×. Arcosa, Inc. grew revenue faster over the last twelve months: 16.7% against −7.61%. Arcosa, Inc. has the higher net margin (16.8% vs 8.60%) and the lower return on invested capital (5.49% vs 15.8%). Both pay a dividend; Tetra Tech, Inc. yields more (0.63% vs 0.24%). Across the 23 metrics below, Tetra Tech, Inc. leads on 14 and Arcosa, Inc. on 9.

Valuation

Metric ACA TTEK Engineering & Construction median
P/E 14.66 20.31 28.59
P/S 2.47 1.73 1.15
P/B 2.41 4.73 3.96
Price to free cash flow 38.23 15.97 25.24
EV/EBITDA 14.17 13.58 14.87
EV/Sales 2.81 1.89 1.42
Earnings yield 6.82% 4.92% 2.47%
Free cash flow yield 2.62% 6.26% 1.91%

Profitability

Metric ACA TTEK Engineering & Construction median
Gross margin 22.80% 18.78% 18.76%
Operating margin 12.00% 12.07% 6.26%
Net margin 16.84% 8.60% 2.23%
Free cash flow margin 6.45% 10.81% 1.83%
Return on equity 17.90% 24.26% 7.90%
Return on assets 9.53% 9.97% 0.87%
Return on invested capital 5.49% 15.78% 2.52%

Growth

Metric ACA TTEK Engineering & Construction median
Revenue growth (TTM) 16.67% (7.61%) 16.67%
EPS growth (last fiscal year) 121.99% (24.39%) —
Revenue growth, 5-year CAGR 8.30% 12.69% 11.76%
Net income growth, 5-year CAGR 14.35% 7.34% 0.00%

Health

Metric ACA TTEK Engineering & Construction median
Debt to equity 0.48 0.43 0.40
Current ratio 3.12 1.18 1.39
Net debt to EBITDA 2.32 1.00 0.38

Dividend

Metric ACA TTEK Engineering & Construction median
Dividend yield 0.24% 0.63% 0.65%
Payout ratio 0.03 0.17 0.00

Size

Metric ACA TTEK Engineering & Construction median
Market cap 7.20b 8.61b 1.31b

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