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 $8.6B against $7.7B — 1.1× the size. Tetra Tech, Inc. trades at the lower P/E: 20.3× against 27.6×. 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; Tetra Tech, Inc. yields more (0.63% vs 0.40%). Across the 23 metrics below, Tetra Tech, Inc. leads on 16 and AECOM on 7.

Valuation

Metric ACM TTEK Engineering & Construction median
P/E 27.55 20.31 28.59
P/S 0.51 1.73 1.15
P/B 3.26 4.73 3.96
Price to free cash flow 38.42 15.97 25.24
EV/EBITDA 11.26 13.58 14.87
EV/Sales 0.62 1.89 1.42
Earnings yield 3.63% 4.92% 2.47%
Free cash flow yield 2.60% 6.26% 1.91%

Profitability

Metric ACM TTEK Engineering & Construction median
Gross margin 5.68% 18.78% 18.76%
Operating margin 4.10% 12.07% 6.26%
Net margin 1.87% 8.60% 2.23%
Free cash flow margin 1.32% 10.81% 1.83%
Return on equity 11.30% 24.26% 7.90%
Return on assets 2.37% 9.97% 0.87%
Return on invested capital 9.62% 15.78% 2.52%

Growth

Metric ACM TTEK Engineering & Construction median
Revenue growth (TTM) (4.24%) (7.61%) 16.67%
EPS growth (last fiscal year) 42.71% (24.39%) —
Revenue growth, 5-year CAGR 4.04% 12.69% 11.76%
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 0.40
Current ratio 1.06 1.18 1.39
Net debt to EBITDA 0.93 1.00 0.38

Dividend

Metric ACM TTEK Engineering & Construction median
Dividend yield 0.40% 0.63% 0.65%
Payout ratio 0.50 0.17 0.00

Size

Metric ACM TTEK Engineering & Construction median
Market cap 7.66b 8.61b 1.31b

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