Argan, Inc. (AGX) vs Granite Construction Incorporated (GVA)

Argan, Inc. and Granite Construction Incorporated are both Engineering & Construction companies. Argan, Inc. and Granite Construction Incorporated are of similar size ($5.1B and $4.9B). Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Argan, Inc. trades at 28.3×. Argan, Inc. grew revenue faster over the last twelve months: 29.0% against 21.8%. Argan, Inc. has the higher net margin (15.1% vs −3.32%) and the lower return on invested capital (0.00% vs 13.6%). Both pay a dividend; Argan, Inc. yields more (2.40% vs 1.10%). Across the 22 metrics below, Argan, Inc. leads on 17 and Granite Construction Incorporated on 5.

Valuation

Metric AGX GVA Engineering & Construction median
P/E 28.33 n/m 28.59
P/S 4.30 1.01 1.15
P/B 10.08 6.25 3.96
Price to free cash flow 9.36 9.92 25.24
EV/EBITDA 22.10 11.22 14.87
EV/Sales 3.44 1.14 1.42
Earnings yield 3.53% (3.28%) 2.47%
Free cash flow yield 10.68% 10.08% 1.91%

Profitability

Metric AGX GVA Engineering & Construction median
Gross margin 20.86% 15.64% 18.76%
Operating margin 15.36% 6.33% 6.26%
Net margin 15.09% (3.32%) 2.23%
Free cash flow margin 45.93% 10.22% 1.83%
Return on equity 39.85% (17.18%) 7.90%
Return on assets 15.70% (4.18%) 0.87%
Return on invested capital 0.00% 13.55% 2.52%

Growth

Metric AGX GVA Engineering & Construction median
Revenue growth (TTM) 29.02% 21.80% 16.67%
EPS growth (last fiscal year) 58.37% 47.33% —
Revenue growth, 5-year CAGR 13.15% 4.43% 11.76%
Net income growth, 5-year CAGR 29.22% 0.00% 0.00%

Health

Metric AGX GVA Engineering & Construction median
Debt to equity 0.00 1.94 0.40
Current ratio 1.50 1.01 1.39
Net debt to EBITDA (6.55) 1.64 0.38

Dividend

Metric AGX GVA Engineering & Construction median
Dividend yield 2.40% 1.10% 0.65%
Payout ratio 0.38 0.54 0.00

Size

Metric AGX GVA Engineering & Construction median
Market cap 5.12b 4.85b 1.31b

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