EMCOR Group, Inc. (EME) vs Quanta Services, Inc. (PWR)

EMCOR Group, Inc. and Quanta Services, Inc. are both Engineering & Construction companies. Quanta Services, Inc. is the larger, with a market value of $76.7B against $26.1B — 2.9× the size. EMCOR Group, Inc. trades at the lower P/E: 17.2× against 45.3×. Quanta Services, Inc. grew revenue faster over the last twelve months: 37.1% against 22.1%. EMCOR Group, Inc. has the higher net margin (7.78% vs 4.51%) and the higher return on invested capital (37.0% vs 10.4%). Both pay a dividend; EMCOR Group, Inc. yields more (0.27% vs 0.09%). Across the 23 metrics below, EMCOR Group, Inc. leads on 20 and Quanta Services, Inc. on 3.

Valuation

Metric EME PWR Engineering & Construction median
P/E 17.23 45.31 27.65
P/S 1.33 2.06 0.85
P/B 6.17 7.25 3.04
Price to free cash flow 17.77 24.81 19.05
EV/EBITDA 11.33 22.39 11.89
EV/Sales 1.30 2.19 1.20
Earnings yield 5.80% 2.21% 2.77%
Free cash flow yield 5.63% 4.03% 2.00%

Profitability

Metric EME PWR Engineering & Construction median
Gross margin 19.59% 15.76% 18.76%
Operating margin 10.44% 6.83% 6.43%
Net margin 7.78% 4.51% 2.14%
Free cash flow margin 7.49% 8.33% 1.12%
Return on equity 40.55% 17.68% 6.05%
Return on assets 15.53% 6.06% 1.19%
Return on invested capital 36.95% 10.40% 2.52%

Growth

Metric EME PWR Engineering & Construction median
Revenue growth (TTM) 22.13% 37.13% 18.09%
EPS growth (last fiscal year) 30.99% 12.77% 13.42%
Revenue growth, 5-year CAGR 14.07% 20.52% 12.23%
Net income growth, 5-year CAGR 57.12% 18.21% 0.00%

Health

Metric EME PWR Engineering & Construction median
Debt to equity 0.00 0.66 0.41
Current ratio 1.17 1.16 1.37
Net debt to EBITDA (0.59) 2.20 0.38

Dividend

Metric EME PWR Engineering & Construction median
Dividend yield 0.27% 0.09% 0.68%
Payout ratio 0.05 0.04 0.18

Size

Metric EME PWR Engineering & Construction median
Market cap 26.06b 76.70b 1.13b

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