Argan, Inc. (AGX) vs Construction Partners, Inc. (ROAD)

Argan, Inc. and Construction Partners, Inc. are both Engineering & Construction companies. Argan, Inc. and Construction Partners, Inc. are of similar size ($5.2B and $4.7B). Argan, Inc. trades at the lower P/E: 26.9× against 32.2×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against 29.0%. Argan, Inc. has the higher net margin (15.1% vs 4.10%) and the lower return on invested capital (0.00% vs 6.82%). Across the 22 metrics below, Argan, Inc. leads on 14 and Construction Partners, Inc. on 8.

Valuation

Metric AGX ROAD Engineering & Construction median
P/E 26.87 32.18 29.24
P/S 4.08 1.33 1.09
P/B 9.56 4.44 3.39
Price to free cash flow 8.88 22.39 24.81
EV/EBITDA 20.68 13.26 14.38
EV/Sales 3.21 1.82 1.37
Earnings yield 3.72% 3.11% 2.83%
Free cash flow yield 11.26% 4.47% 2.28%

Profitability

Metric AGX ROAD Engineering & Construction median
Gross margin 20.86% 15.76% 18.76%
Operating margin 15.36% 8.57% 6.26%
Net margin 15.09% 4.10% 2.23%
Free cash flow margin 45.93% 5.94% 1.83%
Return on equity 39.85% 15.05% 7.90%
Return on assets 15.70% 4.36% 0.87%
Return on invested capital 0.00% 6.82% 2.52%

Growth

Metric AGX ROAD Engineering & Construction median
Revenue growth (TTM) 29.02% 41.92% 16.67%
EPS growth (last fiscal year) 58.37% 40.46% 13.42%
Revenue growth, 5-year CAGR 19.22% 29.05% 11.76%
Net income growth, 5-year CAGR 42.01% 20.36% 0.00%

Health

Metric AGX ROAD Engineering & Construction median
Debt to equity 0.00 1.72 0.40
Current ratio 1.50 1.57 1.39
Net debt to EBITDA (6.55) 3.86 0.38

Dividend

Metric AGX ROAD Engineering & Construction median
Dividend yield 0.78% — 0.63%
Payout ratio 0.21 — 0.17

Size

Metric AGX ROAD Engineering & Construction median
Market cap 5.15b 4.72b 1.09b

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