AECOM (ACM) vs Tetra Tech, Inc. (TTEK)

AECOM and Tetra Tech, Inc. are both Engineering & Construction companies. Tetra Tech, Inc. is the larger, with a market value of $10.4B against $8.6B — 1.2× the size. Tetra Tech, Inc. trades at the lower P/E: 24.2× against 30.2×. AECOM grew revenue faster over the last twelve months: −4.24% against −7.61%. Tetra Tech, Inc. has the higher net margin (8.60% vs 1.87%) and the higher return on invested capital (15.8% vs 9.62%). Both pay a dividend; AECOM yields more (1.86% vs 0.68%). Across the 23 metrics below, Tetra Tech, Inc. leads on 15 and AECOM on 8.

Valuation

Metric ACM TTEK Engineering & Construction median
P/E 30.23 24.23 27.65
P/S 0.56 2.06 0.85
P/B 3.58 5.64 3.04
Price to free cash flow 42.15 19.05 19.05
EV/EBITDA 12.16 15.98 11.89
EV/Sales 0.67 2.22 1.20
Earnings yield 3.31% 4.13% 2.77%
Free cash flow yield 2.37% 5.25% 2.00%

Profitability

Metric ACM TTEK Engineering & Construction median
Gross margin 5.68% 18.78% 18.76%
Operating margin 4.10% 12.07% 6.43%
Net margin 1.87% 8.60% 2.14%
Free cash flow margin 1.32% 10.81% 1.12%
Return on equity 11.30% 24.26% 6.05%
Return on assets 2.37% 9.97% 1.19%
Return on invested capital 9.62% 15.78% 2.52%

Growth

Metric ACM TTEK Engineering & Construction median
Revenue growth (TTM) (4.24%) (7.61%) 18.09%
EPS growth (last fiscal year) 42.71% (24.39%) 13.42%
Revenue growth, 5-year CAGR 4.04% 12.69% 12.23%
Net income growth, 5-year CAGR 0.00% 7.34% 0.00%

Health

Metric ACM TTEK Engineering & Construction median
Debt to equity 1.13 0.43 0.41
Current ratio 1.06 1.18 1.37
Net debt to EBITDA 0.93 1.00 0.38

Dividend

Metric ACM TTEK Engineering & Construction median
Dividend yield 1.86% 0.68% 0.68%
Payout ratio 0.57 0.17 0.18

Size

Metric ACM TTEK Engineering & Construction median
Market cap 8.59b 10.39b 1.13b

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