Comfort Systems USA, Inc. (FIX) vs Sterling Infrastructure, Inc. (STRL)

Comfort Systems USA, Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Comfort Systems USA, Inc. is the larger, with a market value of $52.1B against $13.7B — 3.8× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 30.1× against 35.4×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against 46.1%. Comfort Systems USA, Inc. has the higher net margin (12.8% vs 12.6%) and the higher return on invested capital (81.6% vs 31.1%). Across the 22 metrics below, Comfort Systems USA, Inc. leads on 13 and Sterling Infrastructure, Inc. on 9.

Valuation

Metric FIX STRL Engineering & Construction median
P/E 35.36 30.14 29.24
P/S 4.51 3.79 1.09
P/B 15.75 9.37 3.39
Price to free cash flow 24.72 26.68 24.81
EV/EBITDA 24.37 18.52 14.38
EV/Sales 4.35 3.74 1.37
Earnings yield 2.83% 3.32% 2.83%
Free cash flow yield 4.05% 3.75% 2.28%

Profitability

Metric FIX STRL Engineering & Construction median
Gross margin 25.66% 23.81% 18.76%
Operating margin 16.47% 17.52% 6.26%
Net margin 12.78% 12.55% 2.23%
Free cash flow margin 19.27% 14.20% 1.83%
Return on equity 55.29% 37.49% 7.90%
Return on assets 21.17% 16.11% 0.87%
Return on invested capital 81.59% 31.11% 2.52%

Growth

Metric FIX STRL Engineering & Construction median
Revenue growth (TTM) 46.11% 60.83% 16.67%
EPS growth (last fiscal year) 97.81% 13.42% 13.42%
Revenue growth, 5-year CAGR 26.08% 15.21% 11.76%
Net income growth, 5-year CAGR 46.77% 46.98% 0.00%

Health

Metric FIX STRL Engineering & Construction median
Debt to equity 0.02 0.20 0.40
Current ratio 1.21 1.11 1.39
Net debt to EBITDA (0.57) (0.21) 0.38

Dividend

Metric FIX STRL Engineering & Construction median
Dividend yield 0.21% — 0.63%
Payout ratio 0.07 — 0.17

Size

Metric FIX STRL Engineering & Construction median
Market cap 52.13b 13.65b 1.09b

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