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

Granite Construction Incorporated and KBR, Inc. are both Engineering & Construction companies. Granite Construction Incorporated is the larger, with a market value of $5.3B against $4.8B — 1.1× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; KBR, Inc. trades at 10.8×. Granite Construction Incorporated grew revenue faster over the last twelve months: 25.1% against −2.36%. KBR, Inc. has the higher net margin (5.65% vs −4.99%) and the lower return on invested capital (11.8% vs 12.1%). Both pay a dividend; KBR, Inc. yields more (1.74% vs 0.43%). Across the 21 metrics below, KBR, Inc. leads on 12 and Granite Construction Incorporated on 9.

Valuation

Metric GVA KBR Engineering & Construction median
P/E n/m 10.83 27.65
P/S 1.01 0.61 0.85
P/B 5.35 2.69 3.04
Price to free cash flow 11.08 14.74 19.05
EV/EBITDA 10.79 7.69 11.89
EV/Sales 1.20 0.88 1.20
Earnings yield (5.00%) 9.23% 2.77%
Free cash flow yield 9.03% 6.78% 2.00%

Profitability

Metric GVA KBR Engineering & Construction median
Gross margin 16.08% 14.69% 18.76%
Operating margin 7.45% 9.32% 6.43%
Net margin (4.99%) 5.65% 2.14%
Free cash flow margin 9.09% 4.23% 1.12%
Return on equity (24.04%) 27.26% 6.05%
Return on assets (6.14%) 6.47% 1.19%
Return on invested capital 12.10% 11.76% 2.52%

Growth

Metric GVA KBR Engineering & Construction median
Revenue growth (TTM) 25.11% (2.36%) 18.09%
EPS growth (last fiscal year) 47.33% 15.05% 13.42%
Revenue growth, 5-year CAGR 4.43% 6.19% 12.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GVA KBR Engineering & Construction median
Debt to equity 1.56 1.43 0.41
Current ratio 1.11 0.94 1.37
Net debt to EBITDA 1.64 2.21 0.38

Dividend

Metric GVA KBR Engineering & Construction median
Dividend yield 0.43% 1.74% 0.68%
Payout ratio — 0.19 0.18

Size

Metric GVA KBR Engineering & Construction median
Market cap 5.34b 4.80b 1.13b

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