AECOM (ACM) vs Granite Construction Incorporated (GVA)

AECOM and Granite Construction Incorporated are both Engineering & Construction companies. AECOM is the larger, with a market value of $8.6B against $5.3B — 1.6× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; AECOM trades at 30.2×. Granite Construction Incorporated grew revenue faster over the last twelve months: 25.1% against −4.24%. AECOM has the higher net margin (1.87% vs −4.99%) and the lower return on invested capital (9.62% vs 12.1%). Both pay a dividend; AECOM yields more (1.86% vs 0.43%). Across the 21 metrics below, Granite Construction Incorporated leads on 11 and AECOM on 10.

Valuation

Metric ACM GVA Engineering & Construction median
P/E 30.23 n/m 27.65
P/S 0.56 1.01 0.85
P/B 3.58 5.35 3.04
Price to free cash flow 42.15 11.08 19.05
EV/EBITDA 12.16 10.79 11.89
EV/Sales 0.67 1.20 1.20
Earnings yield 3.31% (5.00%) 2.77%
Free cash flow yield 2.37% 9.03% 2.00%

Profitability

Metric ACM GVA Engineering & Construction median
Gross margin 5.68% 16.08% 18.76%
Operating margin 4.10% 7.45% 6.43%
Net margin 1.87% (4.99%) 2.14%
Free cash flow margin 1.32% 9.09% 1.12%
Return on equity 11.30% (24.04%) 6.05%
Return on assets 2.37% (6.14%) 1.19%
Return on invested capital 9.62% 12.10% 2.52%

Growth

Metric ACM GVA Engineering & Construction median
Revenue growth (TTM) (4.24%) 25.11% 18.09%
EPS growth (last fiscal year) 42.71% 47.33% 13.42%
Revenue growth, 5-year CAGR 4.04% 4.43% 12.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ACM GVA Engineering & Construction median
Debt to equity 1.13 1.56 0.41
Current ratio 1.06 1.11 1.37
Net debt to EBITDA 0.93 1.64 0.38

Dividend

Metric ACM GVA Engineering & Construction median
Dividend yield 1.86% 0.43% 0.68%
Payout ratio 0.57 — 0.18

Size

Metric ACM GVA Engineering & Construction median
Market cap 8.59b 5.34b 1.13b

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