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 ($5.1B and $5.1B). Argan, Inc. trades at the lower P/E: 28.3× against 36.5×. 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 28.33 36.46 28.59
P/S 4.30 1.51 1.15
P/B 10.08 5.03 3.96
Price to free cash flow 9.36 25.37 25.24
EV/EBITDA 22.10 14.55 14.87
EV/Sales 3.44 1.99 1.42
Earnings yield 3.53% 2.74% 2.47%
Free cash flow yield 10.68% 3.94% 1.91%

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% —
Revenue growth, 5-year CAGR 13.15% 29.05% 11.76%
Net income growth, 5-year CAGR 29.22% 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 2.40% — 0.65%
Payout ratio 0.38 0.00 0.00

Size

Metric AGX ROAD Engineering & Construction median
Market cap 5.12b 5.10b 1.31b

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