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 $8.9B against $7.6B — 1.2× the size. Tetra Tech, Inc. trades at the lower P/E: 20.8× against 26.7×. 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 (2.10% vs 0.79%). Across the 23 metrics below, Tetra Tech, Inc. leads on 15 and AECOM on 8.

Valuation

Metric ACM TTEK Engineering & Construction median
P/E 26.67 20.79 29.24
P/S 0.49 1.77 1.09
P/B 3.16 4.84 3.39
Price to free cash flow 37.19 16.35 24.81
EV/EBITDA 10.96 13.88 14.38
EV/Sales 0.60 1.93 1.37
Earnings yield 3.75% 4.81% 2.83%
Free cash flow yield 2.69% 6.12% 2.28%

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%) 13.42%
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 2.10% 0.79% 0.63%
Payout ratio 0.57 0.17 0.17

Size

Metric ACM TTEK Engineering & Construction median
Market cap 7.60b 8.91b 1.09b

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