Granite Construction Incorporated (GVA) vs IES Holdings, Inc. (IESC)

Granite Construction Incorporated and IES Holdings, Inc. are both Engineering & Construction companies. Granite Construction Incorporated and IES Holdings, Inc. are of similar size ($5.9B and $5.3B). Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; IES Holdings, Inc. trades at 12.8×. Granite Construction Incorporated grew revenue faster over the last twelve months: 25.1% against 22.7%. IES Holdings, Inc. has the higher net margin (11.4% vs −4.99%) and the higher return on invested capital (36.6% vs 12.1%). Across the 21 metrics below, IES Holdings, Inc. leads on 15 and Granite Construction Incorporated on 6.

Valuation

Metric GVA IESC Engineering & Construction median
P/E n/m 12.77 27.65
P/S 1.01 1.46 0.85
P/B 5.35 4.72 3.04
Price to free cash flow 11.08 25.34 19.05
EV/EBITDA 10.79 9.93 11.89
EV/Sales 1.20 1.37 1.20
Earnings yield (5.00%) 7.83% 2.77%
Free cash flow yield 9.03% 3.95% 2.00%

Profitability

Metric GVA IESC Engineering & Construction median
Gross margin 16.08% 26.31% 18.76%
Operating margin 7.45% 12.37% 6.43%
Net margin (4.99%) 11.40% 2.14%
Free cash flow margin 9.09% 5.75% 1.12%
Return on equity (24.04%) 45.20% 6.05%
Return on assets (6.14%) 24.26% 1.19%
Return on invested capital 12.10% 36.61% 2.52%

Growth

Metric GVA IESC Engineering & Construction median
Revenue growth (TTM) 25.11% 22.66% 18.09%
EPS growth (last fiscal year) 47.33% 51.87% 13.42%
Revenue growth, 5-year CAGR 4.43% 23.14% 12.23%
Net income growth, 5-year CAGR 0.00% 49.32% 0.00%

Health

Metric GVA IESC Engineering & Construction median
Debt to equity 1.56 0.00 0.41
Current ratio 1.11 1.63 1.37
Net debt to EBITDA 1.64 (0.54) 0.38

Dividend

Metric GVA IESC Engineering & Construction median
Dividend yield 0.43% — 0.68%
Payout ratio — — 0.18

Size

Metric GVA IESC Engineering & Construction median
Market cap 5.34b 5.86b 1.13b

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