Dycom Industries, Inc. (DY) vs Sterling Infrastructure, Inc. (STRL)

Dycom Industries, Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Sterling Infrastructure, Inc. is the larger, with a market value of $13.7B against $7.8B — 1.8× the size. Dycom Industries, Inc. trades at the lower P/E: 22.8× against 30.1×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against 37.8%. Sterling Infrastructure, Inc. has the higher net margin (12.6% vs 4.79%) and the higher return on invested capital (31.1% vs 7.37%). Across the 22 metrics below, Dycom Industries, Inc. leads on 11 and Sterling Infrastructure, Inc. on 11.

Valuation

Metric DY STRL Engineering & Construction median
P/E 22.83 30.14 29.24
P/S 1.11 3.79 1.09
P/B 3.70 9.37 3.39
Price to free cash flow 15.72 26.68 24.81
EV/EBITDA 10.99 18.52 14.38
EV/Sales 1.47 3.74 1.37
Earnings yield 4.38% 3.32% 2.83%
Free cash flow yield 6.36% 3.75% 2.28%

Profitability

Metric DY STRL Engineering & Construction median
Gross margin 20.53% 23.81% 18.76%
Operating margin 7.78% 17.52% 6.26%
Net margin 4.79% 12.55% 2.23%
Free cash flow margin 7.05% 14.20% 1.83%
Return on equity 19.20% 37.49% 7.90%
Return on assets 6.75% 16.11% 0.87%
Return on invested capital 7.37% 31.11% 2.52%

Growth

Metric DY STRL Engineering & Construction median
Revenue growth (TTM) 37.79% 60.83% 16.67%
EPS growth (last fiscal year) 20.71% 13.42% 13.42%
Revenue growth, 5-year CAGR 11.63% 15.21% 11.76%
Net income growth, 5-year CAGR 52.28% 46.98% 0.00%

Health

Metric DY STRL Engineering & Construction median
Debt to equity 1.37 0.20 0.40
Current ratio 2.35 1.11 1.39
Net debt to EBITDA 3.01 (0.21) 0.38

Dividend

Metric DY STRL Engineering & Construction median
Dividend yield — — 0.63%
Payout ratio — — 0.17

Size

Metric DY STRL Engineering & Construction median
Market cap 7.77b 13.65b 1.09b

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