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 $13.7B against $7.6B — 1.8× the size. AECOM trades at the lower P/E: 26.7× against 30.1×. 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 26.67 30.14 29.24
P/S 0.49 3.79 1.09
P/B 3.16 9.37 3.39
Price to free cash flow 37.19 26.68 24.81
EV/EBITDA 10.96 18.52 14.38
EV/Sales 0.60 3.74 1.37
Earnings yield 3.75% 3.32% 2.83%
Free cash flow yield 2.69% 3.75% 2.28%

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% 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 2.10% — 0.63%
Payout ratio 0.57 — 0.17

Size

Metric ACM STRL Engineering & Construction median
Market cap 7.60b 13.65b 1.09b

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