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 $97.1B against $35.0B — 2.8× the size. EMCOR Group, Inc. trades at the lower P/E: 23.6× against 73.2×. Quanta Services, Inc. grew revenue faster over the last twelve months: 26.3% against 18.9%. EMCOR Group, Inc. has the higher net margin (7.74% vs 4.03%) and the higher return on invested capital (38.2% vs 8.29%). Both pay a dividend; EMCOR Group, Inc. yields more (0.29% vs 0.15%). 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 23.63 73.18 28.59
P/S 1.82 2.96 1.15
P/B 8.30 10.01 3.96
Price to free cash flow 28.80 41.50 25.24
EV/EBITDA 15.54 33.62 14.87
EV/Sales 1.78 3.13 1.42
Earnings yield 4.23% 1.37% 2.47%
Free cash flow yield 3.47% 2.41% 1.91%

Profitability

Metric EME PWR Engineering & Construction median
Gross margin 19.43% 15.46% 18.76%
Operating margin 10.38% 6.19% 6.26%
Net margin 7.74% 4.03% 2.23%
Free cash flow margin 6.32% 7.15% 1.83%
Return on equity 40.35% 15.07% 7.90%
Return on assets 15.51% 5.51% 0.87%
Return on invested capital 38.24% 8.29% 2.52%

Growth

Metric EME PWR Engineering & Construction median
Revenue growth (TTM) 18.92% 26.30% 16.67%
EPS growth (last fiscal year) 30.99% 12.77% —
Revenue growth, 5-year CAGR 14.07% 20.52% 11.76%
Net income growth, 5-year CAGR 57.12% 18.21% 0.00%

Health

Metric EME PWR Engineering & Construction median
Debt to equity 0.00 0.63 0.40
Current ratio 1.28 1.10 1.39
Net debt to EBITDA (0.59) 2.20 0.38

Dividend

Metric EME PWR Engineering & Construction median
Dividend yield 0.29% 0.15% 0.65%
Payout ratio 0.06 0.08 0.00

Size

Metric EME PWR Engineering & Construction median
Market cap 34.98b 97.14b 1.31b

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