AECOM (ACM) vs Construction Partners, Inc. (ROAD)

AECOM and Construction Partners, Inc. are both Engineering & Construction companies. AECOM is the larger, with a market value of $8.6B against $4.4B — 2.0× the size. AECOM trades at the lower P/E: 30.2× against 30.2×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against −4.24%. Construction Partners, Inc. has the higher net margin (4.10% vs 1.87%) and the lower return on invested capital (6.82% vs 9.62%). Across the 21 metrics below, Construction Partners, Inc. leads on 12 and AECOM on 9.

Valuation

Metric ACM ROAD Engineering & Construction median
P/E 30.23 30.25 27.65
P/S 0.56 1.25 0.85
P/B 3.58 4.18 3.04
Price to free cash flow 42.15 21.05 19.05
EV/EBITDA 12.16 12.68 11.89
EV/Sales 0.67 1.74 1.20
Earnings yield 3.31% 3.31% 2.77%
Free cash flow yield 2.37% 4.75% 2.00%

Profitability

Metric ACM ROAD Engineering & Construction median
Gross margin 5.68% 15.76% 18.76%
Operating margin 4.10% 8.57% 6.43%
Net margin 1.87% 4.10% 2.14%
Free cash flow margin 1.32% 5.94% 1.12%
Return on equity 11.30% 15.05% 6.05%
Return on assets 2.37% 4.36% 1.19%
Return on invested capital 9.62% 6.82% 2.52%

Growth

Metric ACM ROAD Engineering & Construction median
Revenue growth (TTM) (4.24%) 41.92% 18.09%
EPS growth (last fiscal year) 42.71% 40.46% 13.42%
Revenue growth, 5-year CAGR 4.04% 29.05% 12.23%
Net income growth, 5-year CAGR 0.00% 20.36% 0.00%

Health

Metric ACM ROAD Engineering & Construction median
Debt to equity 1.13 1.72 0.41
Current ratio 1.06 1.57 1.37
Net debt to EBITDA 0.93 3.86 0.38

Dividend

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

Size

Metric ACM ROAD Engineering & Construction median
Market cap 8.59b 4.40b 1.13b

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