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

AECOM and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Sterling Infrastructure, Inc. is the larger, with a market value of $16.1B against $7.7B — 2.1× the size. AECOM trades at the lower P/E: 27.6× against 36.4×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against −4.24%. Sterling Infrastructure, Inc. has the higher net margin (12.6% vs 1.87%) and the higher return on invested capital (31.1% vs 9.62%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 15 and AECOM on 7.

Valuation

Metric ACM STRL Engineering & Construction median
P/E 27.55 36.38 28.59
P/S 0.51 4.57 1.15
P/B 3.26 11.31 3.96
Price to free cash flow 38.42 32.20 25.24
EV/EBITDA 11.26 22.41 14.87
EV/Sales 0.62 4.52 1.42
Earnings yield 3.63% 2.75% 2.47%
Free cash flow yield 2.60% 3.11% 1.91%

Profitability

Metric ACM STRL Engineering & Construction median
Gross margin 5.68% 23.81% 18.76%
Operating margin 4.10% 17.52% 6.26%
Net margin 1.87% 12.55% 2.23%
Free cash flow margin 1.32% 14.20% 1.83%
Return on equity 11.30% 37.49% 7.90%
Return on assets 2.37% 16.11% 0.87%
Return on invested capital 9.62% 31.11% 2.52%

Growth

Metric ACM STRL Engineering & Construction median
Revenue growth (TTM) (4.24%) 60.83% 16.67%
EPS growth (last fiscal year) 42.71% 13.42% —
Revenue growth, 5-year CAGR 4.04% 15.21% 11.76%
Net income growth, 5-year CAGR 0.00% 46.98% 0.00%

Health

Metric ACM STRL Engineering & Construction median
Debt to equity 1.13 0.20 0.40
Current ratio 1.06 1.11 1.39
Net debt to EBITDA 0.93 (0.21) 0.38

Dividend

Metric ACM STRL Engineering & Construction median
Dividend yield 0.40% — 0.65%
Payout ratio 0.50 0.00 0.00

Size

Metric ACM STRL Engineering & Construction median
Market cap 7.66b 16.06b 1.31b

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