Argan, Inc. (AGX) vs KBR, Inc. (KBR)

Argan, Inc. and KBR, Inc. are both Engineering & Construction companies. Argan, Inc. is the larger, with a market value of $5.1B against $4.4B — 1.2× the size. KBR, Inc. trades at the lower P/E: 10.4× against 28.3×. Argan, Inc. grew revenue faster over the last twelve months: 29.0% against −3.64%. Argan, Inc. has the higher net margin (15.1% vs 5.49%) and the lower return on invested capital (0.00% vs 11.8%). Both pay a dividend; Argan, Inc. yields more (2.40% vs 0.92%). Across the 23 metrics below, Argan, Inc. leads on 16 and KBR, Inc. on 7.

Valuation

Metric AGX KBR Engineering & Construction median
P/E 28.33 10.40 28.59
P/S 4.30 0.56 1.15
P/B 10.08 2.65 3.96
Price to free cash flow 9.36 12.40 25.24
EV/EBITDA 22.10 7.32 14.87
EV/Sales 3.44 0.85 1.42
Earnings yield 3.53% 9.61% 2.47%
Free cash flow yield 10.68% 8.07% 1.91%

Profitability

Metric AGX KBR Engineering & Construction median
Gross margin 20.86% 14.48% 18.76%
Operating margin 15.36% 9.50% 6.26%
Net margin 15.09% 5.49% 2.23%
Free cash flow margin 45.93% 4.64% 1.83%
Return on equity 39.85% 27.08% 7.90%
Return on assets 15.70% 6.30% 0.87%
Return on invested capital 0.00% 11.82% 2.52%

Growth

Metric AGX KBR Engineering & Construction median
Revenue growth (TTM) 29.02% (3.64%) 16.67%
EPS growth (last fiscal year) 58.37% 15.05% —
Revenue growth, 5-year CAGR 13.15% 6.19% 11.76%
Net income growth, 5-year CAGR 29.22% 0.00% 0.00%

Health

Metric AGX KBR Engineering & Construction median
Debt to equity 0.00 1.55 0.40
Current ratio 1.50 1.15 1.39
Net debt to EBITDA (6.55) 2.21 0.38

Dividend

Metric AGX KBR Engineering & Construction median
Dividend yield 2.40% 0.92% 0.65%
Payout ratio 0.38 0.44 0.00

Size

Metric AGX KBR Engineering & Construction median
Market cap 5.12b 4.41b 1.31b

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