Argan, Inc. (AGX) vs Tetra Tech, Inc. (TTEK)

Argan, Inc. and Tetra Tech, Inc. are both Engineering & Construction companies. Tetra Tech, Inc. is the larger, with a market value of $8.6B against $5.1B — 1.7× the size. Tetra Tech, Inc. trades at the lower P/E: 20.3× against 28.3×. Argan, Inc. grew revenue faster over the last twelve months: 29.0% against −7.61%. Argan, Inc. has the higher net margin (15.1% vs 8.60%) and the lower return on invested capital (0.00% vs 15.8%). Both pay a dividend; Argan, Inc. yields more (2.40% vs 0.63%). Across the 23 metrics below, Argan, Inc. leads on 16 and Tetra Tech, Inc. on 7.

Valuation

Metric AGX TTEK Engineering & Construction median
P/E 28.33 20.31 28.59
P/S 4.30 1.73 1.15
P/B 10.08 4.73 3.96
Price to free cash flow 9.36 15.97 25.24
EV/EBITDA 22.10 13.58 14.87
EV/Sales 3.44 1.89 1.42
Earnings yield 3.53% 4.92% 2.47%
Free cash flow yield 10.68% 6.26% 1.91%

Profitability

Metric AGX TTEK Engineering & Construction median
Gross margin 20.86% 18.78% 18.76%
Operating margin 15.36% 12.07% 6.26%
Net margin 15.09% 8.60% 2.23%
Free cash flow margin 45.93% 10.81% 1.83%
Return on equity 39.85% 24.26% 7.90%
Return on assets 15.70% 9.97% 0.87%
Return on invested capital 0.00% 15.78% 2.52%

Growth

Metric AGX TTEK Engineering & Construction median
Revenue growth (TTM) 29.02% (7.61%) 16.67%
EPS growth (last fiscal year) 58.37% (24.39%) —
Revenue growth, 5-year CAGR 13.15% 12.69% 11.76%
Net income growth, 5-year CAGR 29.22% 7.34% 0.00%

Health

Metric AGX TTEK Engineering & Construction median
Debt to equity 0.00 0.43 0.40
Current ratio 1.50 1.18 1.39
Net debt to EBITDA (6.55) 1.00 0.38

Dividend

Metric AGX TTEK Engineering & Construction median
Dividend yield 2.40% 0.63% 0.65%
Payout ratio 0.38 0.17 0.00

Size

Metric AGX TTEK Engineering & Construction median
Market cap 5.12b 8.61b 1.31b

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