Argan, Inc. (AGX) vs Dycom Industries, Inc. (DY)

Argan, Inc. and Dycom Industries, Inc. are both Engineering & Construction companies. Dycom Industries, Inc. is the larger, with a market value of $8.2B against $5.1B — 1.6× the size. Dycom Industries, Inc. trades at the lower P/E: 24.4× against 28.3×. Dycom Industries, Inc. grew revenue faster over the last twelve months: 37.8% against 29.0%. Argan, Inc. has the higher net margin (15.1% vs 4.79%) and the lower return on invested capital (0.00% vs 7.37%). Across the 22 metrics below, Argan, Inc. leads on 12 and Dycom Industries, Inc. on 10.

Valuation

Metric AGX DY Engineering & Construction median
P/E 28.33 24.44 28.59
P/S 4.30 1.19 1.15
P/B 10.08 3.96 3.96
Price to free cash flow 9.36 16.83 25.24
EV/EBITDA 22.10 11.58 14.87
EV/Sales 3.44 1.55 1.42
Earnings yield 3.53% 4.09% 2.47%
Free cash flow yield 10.68% 5.94% 1.91%

Profitability

Metric AGX DY Engineering & Construction median
Gross margin 20.86% 20.53% 18.76%
Operating margin 15.36% 7.78% 6.26%
Net margin 15.09% 4.79% 2.23%
Free cash flow margin 45.93% 7.05% 1.83%
Return on equity 39.85% 19.20% 7.90%
Return on assets 15.70% 6.75% 0.87%
Return on invested capital 0.00% 7.37% 2.52%

Growth

Metric AGX DY Engineering & Construction median
Revenue growth (TTM) 29.02% 37.79% 16.67%
EPS growth (last fiscal year) 58.37% 20.71% —
Revenue growth, 5-year CAGR 13.15% 11.63% 11.76%
Net income growth, 5-year CAGR 29.22% 52.28% 0.00%

Health

Metric AGX DY Engineering & Construction median
Debt to equity 0.00 1.37 0.40
Current ratio 1.50 2.35 1.39
Net debt to EBITDA (6.55) 3.01 0.38

Dividend

Metric AGX DY Engineering & Construction median
Dividend yield 2.40% — 0.65%
Payout ratio 0.38 0.00 0.00

Size

Metric AGX DY Engineering & Construction median
Market cap 5.12b 8.22b 1.31b

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