Argan, Inc. (AGX) vs Primoris Services Corporation (PRIM)

Argan, Inc. and Primoris Services Corporation are both Engineering & Construction companies. Argan, Inc. is the larger, with a market value of $5.1B against $3.9B — 1.3× the size. Primoris Services Corporation trades at the lower P/E: 28.2× against 28.3×. Argan, Inc. grew revenue faster over the last twelve months: 29.0% against 5.12%. Argan, Inc. has the higher net margin (15.1% vs 1.92%) and the lower return on invested capital (0.00% vs 6.07%). Both pay a dividend; Argan, Inc. yields more (2.40% vs 0.66%). Across the 23 metrics below, Argan, Inc. leads on 15 and Primoris Services Corporation on 8.

Valuation

Metric AGX PRIM Engineering & Construction median
P/E 28.33 28.16 28.59
P/S 4.30 0.54 1.15
P/B 10.08 2.44 3.96
Price to free cash flow 9.36 33.13 25.24
EV/EBITDA 22.10 14.31 14.87
EV/Sales 3.44 0.62 1.42
Earnings yield 3.53% 3.55% 2.47%
Free cash flow yield 10.68% 3.02% 1.91%

Profitability

Metric AGX PRIM Engineering & Construction median
Gross margin 20.86% 8.62% 18.76%
Operating margin 15.36% 2.91% 6.26%
Net margin 15.09% 1.92% 2.23%
Free cash flow margin 45.93% 1.63% 1.83%
Return on equity 39.85% 8.89% 7.90%
Return on assets 15.70% 3.04% 0.87%
Return on invested capital 0.00% 6.07% 2.52%

Growth

Metric AGX PRIM Engineering & Construction median
Revenue growth (TTM) 29.02% 5.12% 16.67%
EPS growth (last fiscal year) 58.37% 51.66% —
Revenue growth, 5-year CAGR 13.15% 16.75% 11.76%
Net income growth, 5-year CAGR 29.22% 21.23% 0.00%

Health

Metric AGX PRIM Engineering & Construction median
Debt to equity 0.00 0.50 0.40
Current ratio 1.50 1.18 1.39
Net debt to EBITDA (6.55) (0.13) 0.38

Dividend

Metric AGX PRIM Engineering & Construction median
Dividend yield 2.40% 0.66% 0.65%
Payout ratio 0.38 0.10 0.00

Size

Metric AGX PRIM Engineering & Construction median
Market cap 5.12b 3.89b 1.31b

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