EMCOR Group, Inc. (EME) vs Tetra Tech, Inc. (TTEK)

EMCOR Group, Inc. and Tetra Tech, Inc. are both Engineering & Construction companies. EMCOR Group, Inc. is the larger, with a market value of $26.1B against $10.4B — 2.5× the size. EMCOR Group, Inc. trades at the lower P/E: 17.2× against 24.2×. EMCOR Group, Inc. grew revenue faster over the last twelve months: 22.1% against −7.61%. Tetra Tech, Inc. has the higher net margin (8.60% vs 7.78%) and the lower return on invested capital (15.8% vs 37.0%). Both pay a dividend; Tetra Tech, Inc. yields more (0.68% vs 0.27%). Across the 23 metrics below, EMCOR Group, Inc. leads on 17 and Tetra Tech, Inc. on 6.

Valuation

Metric EME TTEK Engineering & Construction median
P/E 17.23 24.23 27.65
P/S 1.33 2.06 0.85
P/B 6.17 5.64 3.04
Price to free cash flow 17.77 19.05 19.05
EV/EBITDA 11.33 15.98 11.89
EV/Sales 1.30 2.22 1.20
Earnings yield 5.80% 4.13% 2.77%
Free cash flow yield 5.63% 5.25% 2.00%

Profitability

Metric EME TTEK Engineering & Construction median
Gross margin 19.59% 18.78% 18.76%
Operating margin 10.44% 12.07% 6.43%
Net margin 7.78% 8.60% 2.14%
Free cash flow margin 7.49% 10.81% 1.12%
Return on equity 40.55% 24.26% 6.05%
Return on assets 15.53% 9.97% 1.19%
Return on invested capital 36.95% 15.78% 2.52%

Growth

Metric EME TTEK Engineering & Construction median
Revenue growth (TTM) 22.13% (7.61%) 18.09%
EPS growth (last fiscal year) 30.99% (24.39%) 13.42%
Revenue growth, 5-year CAGR 14.07% 12.69% 12.23%
Net income growth, 5-year CAGR 57.12% 7.34% 0.00%

Health

Metric EME TTEK Engineering & Construction median
Debt to equity 0.00 0.43 0.41
Current ratio 1.17 1.18 1.37
Net debt to EBITDA (0.59) 1.00 0.38

Dividend

Metric EME TTEK Engineering & Construction median
Dividend yield 0.27% 0.68% 0.68%
Payout ratio 0.05 0.17 0.18

Size

Metric EME TTEK Engineering & Construction median
Market cap 26.06b 10.39b 1.13b

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