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 $58.3B against $16.1B — 3.6× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 36.4× against 40.7×. 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 40.67 36.38 28.59
P/S 5.19 4.57 1.15
P/B 18.12 11.31 3.96
Price to free cash flow 28.43 32.20 25.24
EV/EBITDA 28.17 22.41 14.87
EV/Sales 5.03 4.52 1.42
Earnings yield 2.46% 2.75% 2.47%
Free cash flow yield 3.52% 3.11% 1.91%

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% —
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 0.36% — 0.65%
Payout ratio 0.10 0.00 0.00

Size

Metric FIX STRL Engineering & Construction median
Market cap 58.25b 16.06b 1.31b

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