Granite Construction Incorporated (GVA) vs KBR, Inc. (KBR)

Granite Construction Incorporated and KBR, Inc. are both Engineering & Construction companies. Granite Construction Incorporated and KBR, Inc. are of similar size ($4.8B and $4.6B). Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; KBR, Inc. trades at 11.0×. Granite Construction Incorporated grew revenue faster over the last twelve months: 21.8% against −3.64%. KBR, Inc. has the higher net margin (5.49% vs −3.32%) and the lower return on invested capital (11.8% vs 13.6%). Both pay a dividend; KBR, Inc. yields more (1.81% vs 0.47%). Across the 21 metrics below, KBR, Inc. leads on 13 and Granite Construction Incorporated on 8.

Valuation

Metric GVA KBR Engineering & Construction median
P/E n/m 10.96 29.24
P/S 0.97 0.59 1.09
P/B 5.97 2.79 3.39
Price to free cash flow 9.47 13.06 24.81
EV/EBITDA 10.77 7.58 14.38
EV/Sales 1.10 0.88 1.37
Earnings yield (3.44%) 9.13% 2.83%
Free cash flow yield 10.56% 7.66% 2.28%

Profitability

Metric GVA KBR Engineering & Construction median
Gross margin 15.64% 14.48% 18.76%
Operating margin 6.33% 9.50% 6.26%
Net margin (3.32%) 5.49% 2.23%
Free cash flow margin 10.22% 4.64% 1.83%
Return on equity (17.18%) 27.08% 7.90%
Return on assets (4.18%) 6.30% 0.87%
Return on invested capital 13.55% 11.82% 2.52%

Growth

Metric GVA KBR Engineering & Construction median
Revenue growth (TTM) 21.80% (3.64%) 16.67%
EPS growth (last fiscal year) 47.33% 15.05% 13.42%
Revenue growth, 5-year CAGR 4.43% 6.19% 11.76%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GVA KBR Engineering & Construction median
Debt to equity 1.94 1.55 0.40
Current ratio 1.01 1.15 1.39
Net debt to EBITDA 1.64 2.21 0.38

Dividend

Metric GVA KBR Engineering & Construction median
Dividend yield 0.47% 1.81% 0.63%
Payout ratio — 0.20 0.17

Size

Metric GVA KBR Engineering & Construction median
Market cap 4.76b 4.59b 1.09b

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