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

Argan, Inc. and Construction Partners, Inc. are both Engineering & Construction companies. Construction Partners, Inc. is the larger, with a market value of $4.4B against $3.7B — 1.2× the size. Argan, Inc. trades at the lower P/E: 20.3× against 30.2×. 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 20.33 30.25 27.65
P/S 3.09 1.25 0.85
P/B 7.24 4.18 3.04
Price to free cash flow 6.72 21.05 19.05
EV/EBITDA 14.29 12.68 11.89
EV/Sales 2.22 1.74 1.20
Earnings yield 4.92% 3.31% 2.77%
Free cash flow yield 14.88% 4.75% 2.00%

Profitability

Metric AGX ROAD Engineering & Construction median
Gross margin 20.86% 15.76% 18.76%
Operating margin 15.36% 8.57% 6.43%
Net margin 15.09% 4.10% 2.14%
Free cash flow margin 45.93% 5.94% 1.12%
Return on equity 39.85% 15.05% 6.05%
Return on assets 15.70% 4.36% 1.19%
Return on invested capital 0.00% 6.82% 2.52%

Growth

Metric AGX ROAD Engineering & Construction median
Revenue growth (TTM) 29.02% 41.92% 18.09%
EPS growth (last fiscal year) 58.37% 40.46% 13.42%
Revenue growth, 5-year CAGR 19.22% 29.05% 12.23%
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 0.41
Current ratio 1.50 1.57 1.37
Net debt to EBITDA (6.55) 3.86 0.38

Dividend

Metric AGX ROAD Engineering & Construction median
Dividend yield 0.84% — 0.68%
Payout ratio 0.17 — 0.18

Size

Metric AGX ROAD Engineering & Construction median
Market cap 3.66b 4.40b 1.13b

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