Comfort Systems USA, Inc. (FIX) vs IES Holdings, Inc. (IESC)

Comfort Systems USA, Inc. and IES Holdings, Inc. are both Engineering & Construction companies. Comfort Systems USA, Inc. is the larger, with a market value of $58.3B against $12.8B — 4.6× the size. IES Holdings, Inc. trades at the lower P/E: 28.4× against 40.7×. Comfort Systems USA, Inc. grew revenue faster over the last twelve months: 46.1% against 22.7%. Comfort Systems USA, Inc. has the higher net margin (12.8% vs 11.4%) and the higher return on invested capital (81.6% vs 36.6%). Across the 22 metrics below, Comfort Systems USA, Inc. leads on 11 and IES Holdings, Inc. on 11.

Valuation

Metric FIX IESC Engineering & Construction median
P/E 40.67 28.41 28.59
P/S 5.19 3.24 1.15
P/B 18.12 10.51 3.96
Price to free cash flow 28.43 56.36 25.24
EV/EBITDA 28.17 22.82 14.87
EV/Sales 5.03 3.16 1.42
Earnings yield 2.46% 3.52% 2.47%
Free cash flow yield 3.52% 1.77% 1.91%

Profitability

Metric FIX IESC Engineering & Construction median
Gross margin 25.66% 26.31% 18.76%
Operating margin 16.47% 12.37% 6.26%
Net margin 12.78% 11.40% 2.23%
Free cash flow margin 19.27% 5.75% 1.83%
Return on equity 55.29% 45.20% 7.90%
Return on assets 21.17% 24.26% 0.87%
Return on invested capital 81.59% 36.61% 2.52%

Growth

Metric FIX IESC Engineering & Construction median
Revenue growth (TTM) 46.11% 22.66% 16.67%
EPS growth (last fiscal year) 97.81% 51.87% —
Revenue growth, 5-year CAGR 26.08% 23.14% 11.76%
Net income growth, 5-year CAGR 46.77% 49.32% 0.00%

Health

Metric FIX IESC Engineering & Construction median
Debt to equity 0.02 0.00 0.40
Current ratio 1.21 1.63 1.39
Net debt to EBITDA (0.57) (0.54) 0.38

Dividend

Metric FIX IESC Engineering & Construction median
Dividend yield 0.36% — 0.65%
Payout ratio 0.10 0.00 0.00

Size

Metric FIX IESC Engineering & Construction median
Market cap 58.25b 12.77b 1.31b

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