Exponent, Inc. (EXPO) vs Granite Construction Incorporated (GVA)

Exponent, Inc. and Granite Construction Incorporated are both Engineering & Construction companies. Granite Construction Incorporated is the larger, with a market value of $5.3B against $4.1B — 1.3× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Exponent, Inc. trades at 36.8×. Granite Construction Incorporated grew revenue faster over the last twelve months: 25.1% against 15.4%. Exponent, Inc. has the higher net margin (17.4% vs −4.99%) and the higher return on invested capital (45.4% vs 12.1%). Both pay a dividend; Exponent, Inc. yields more (1.44% vs 0.43%). Across the 22 metrics below, Exponent, Inc. leads on 13 and Granite Construction Incorporated on 9.

Valuation

Metric EXPO GVA Engineering & Construction median
P/E 36.83 n/m 27.65
P/S 6.25 1.01 0.85
P/B 13.37 5.35 3.04
Price to free cash flow 37.93 11.08 19.05
EV/EBITDA 29.04 10.79 11.89
EV/Sales 6.07 1.20 1.20
Earnings yield 2.72% (5.00%) 2.77%
Free cash flow yield 2.64% 9.03% 2.00%

Profitability

Metric EXPO GVA Engineering & Construction median
Gross margin 88.48% 16.08% 18.76%
Operating margin 21.31% 7.45% 6.43%
Net margin 17.40% (4.99%) 2.14%
Free cash flow margin 0.00% 9.09% 1.12%
Return on equity 32.27% (24.04%) 6.05%
Return on assets 15.77% (6.14%) 1.19%
Return on invested capital 45.43% 12.10% 2.52%

Growth

Metric EXPO GVA Engineering & Construction median
Revenue growth (TTM) 15.35% 25.11% 18.09%
EPS growth (last fiscal year) (1.90%) 47.33% 13.42%
Revenue growth, 5-year CAGR 7.79% 4.43% 12.23%
Net income growth, 5-year CAGR 5.13% 0.00% 0.00%

Health

Metric EXPO GVA Engineering & Construction median
Debt to equity 0.00 1.56 0.41
Current ratio 1.94 1.11 1.37
Net debt to EBITDA (1.71) 1.64 0.38

Dividend

Metric EXPO GVA Engineering & Construction median
Dividend yield 1.44% 0.43% 0.68%
Payout ratio 0.53 — 0.18

Size

Metric EXPO GVA Engineering & Construction median
Market cap 4.08b 5.34b 1.13b

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