AECOM (ACM) vs Sterling Infrastructure, Inc. (STRL)

AECOM and Sterling Infrastructure, Inc. are both Engineering & Construction companies. AECOM is the larger, with a market value of $8.6B against $7.5B — 1.2× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 13.2× against 30.2×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 93.1% against −4.24%. Sterling Infrastructure, Inc. has the higher net margin (12.9% vs 1.87%) and the higher return on invested capital (34.2% vs 9.62%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 17 and AECOM on 5.

Valuation

Metric ACM STRL Engineering & Construction median
P/E 30.23 13.25 27.65
P/S 0.56 1.75 0.85
P/B 3.58 4.84 3.04
Price to free cash flow 42.15 15.77 19.05
EV/EBITDA 12.16 8.39 11.89
EV/Sales 0.67 1.72 1.20
Earnings yield 3.31% 7.55% 2.77%
Free cash flow yield 2.37% 6.34% 2.00%

Profitability

Metric ACM STRL Engineering & Construction median
Gross margin 5.68% 23.78% 18.76%
Operating margin 4.10% 18.17% 6.43%
Net margin 1.87% 12.85% 2.14%
Free cash flow margin 1.32% 11.06% 1.12%
Return on equity 11.30% 42.00% 6.05%
Return on assets 2.37% 18.34% 1.19%
Return on invested capital 9.62% 34.18% 2.52%

Growth

Metric ACM STRL Engineering & Construction median
Revenue growth (TTM) (4.24%) 93.14% 18.09%
EPS growth (last fiscal year) 42.71% 13.42% 13.42%
Revenue growth, 5-year CAGR 4.04% 15.21% 12.23%
Net income growth, 5-year CAGR 0.00% 46.98% 0.00%

Health

Metric ACM STRL Engineering & Construction median
Debt to equity 1.13 0.06 0.41
Current ratio 1.06 1.04 1.37
Net debt to EBITDA 0.93 (0.21) 0.38

Dividend

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

Size

Metric ACM STRL Engineering & Construction median
Market cap 8.59b 7.45b 1.13b

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