EMCOR Group, Inc. (EME) vs Sterling Infrastructure, Inc. (STRL)

EMCOR Group, Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. EMCOR Group, Inc. is the larger, with a market value of $35.0B against $16.1B — 2.2× the size. EMCOR Group, Inc. trades at the lower P/E: 23.6× against 36.4×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against 18.9%. Sterling Infrastructure, Inc. has the higher net margin (12.6% vs 7.74%) and the lower return on invested capital (31.1% vs 38.2%). Across the 22 metrics below, EMCOR Group, Inc. leads on 15 and Sterling Infrastructure, Inc. on 7.

Valuation

Metric EME STRL Engineering & Construction median
P/E 23.63 36.38 28.59
P/S 1.82 4.57 1.15
P/B 8.30 11.31 3.96
Price to free cash flow 28.80 32.20 25.24
EV/EBITDA 15.54 22.41 14.87
EV/Sales 1.78 4.52 1.42
Earnings yield 4.23% 2.75% 2.47%
Free cash flow yield 3.47% 3.11% 1.91%

Profitability

Metric EME STRL Engineering & Construction median
Gross margin 19.43% 23.81% 18.76%
Operating margin 10.38% 17.52% 6.26%
Net margin 7.74% 12.55% 2.23%
Free cash flow margin 6.32% 14.20% 1.83%
Return on equity 40.35% 37.49% 7.90%
Return on assets 15.51% 16.11% 0.87%
Return on invested capital 38.24% 31.11% 2.52%

Growth

Metric EME STRL Engineering & Construction median
Revenue growth (TTM) 18.92% 60.83% 16.67%
EPS growth (last fiscal year) 30.99% 13.42% —
Revenue growth, 5-year CAGR 14.07% 15.21% 11.76%
Net income growth, 5-year CAGR 57.12% 46.98% 0.00%

Health

Metric EME STRL Engineering & Construction median
Debt to equity 0.00 0.20 0.40
Current ratio 1.28 1.11 1.39
Net debt to EBITDA (0.59) (0.21) 0.38

Dividend

Metric EME STRL Engineering & Construction median
Dividend yield 0.29% — 0.65%
Payout ratio 0.06 0.00 0.00

Size

Metric EME STRL Engineering & Construction median
Market cap 34.98b 16.06b 1.31b

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