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 $32.3B against $13.7B — 2.4× the size. EMCOR Group, Inc. trades at the lower P/E: 22.3× against 30.1×. 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 13 and Sterling Infrastructure, Inc. on 9.

Valuation

Metric EME STRL Engineering & Construction median
P/E 22.35 30.14 29.24
P/S 1.72 3.79 1.09
P/B 7.85 9.37 3.39
Price to free cash flow 27.23 26.68 24.81
EV/EBITDA 14.68 18.52 14.38
EV/Sales 1.69 3.74 1.37
Earnings yield 4.48% 3.32% 2.83%
Free cash flow yield 3.67% 3.75% 2.28%

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% 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 0.22% — 0.63%
Payout ratio 0.05 — 0.17

Size

Metric EME STRL Engineering & Construction median
Market cap 32.31b 13.65b 1.09b

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