Granite Construction Incorporated (GVA) vs MYR Group, Inc. (MYRG)

Granite Construction Incorporated and MYR Group, Inc. are both Engineering & Construction companies. Granite Construction Incorporated and MYR Group, Inc. are of similar size ($4.8B and $4.5B). Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; MYR Group, Inc. trades at 26.4×. Granite Construction Incorporated grew revenue faster over the last twelve months: 21.8% against 16.1%. MYR Group, Inc. has the higher net margin (4.13% vs −3.32%) and the higher return on invested capital (22.5% vs 13.6%). Across the 21 metrics below, MYR Group, Inc. leads on 13 and Granite Construction Incorporated on 8.

Valuation

Metric GVA MYRG Engineering & Construction median
P/E n/m 26.36 29.24
P/S 0.97 1.09 1.09
P/B 5.97 5.78 3.39
Price to free cash flow 9.47 21.80 24.81
EV/EBITDA 10.77 14.35 14.38
EV/Sales 1.10 1.06 1.37
Earnings yield (3.44%) 3.79% 2.83%
Free cash flow yield 10.56% 4.59% 2.28%

Profitability

Metric GVA MYRG Engineering & Construction median
Gross margin 15.64% 12.49% 18.76%
Operating margin 6.33% 5.63% 6.26%
Net margin (3.32%) 4.13% 2.23%
Free cash flow margin 10.22% 5.00% 1.83%
Return on equity (17.18%) 24.71% 7.90%
Return on assets (4.18%) 10.14% 0.87%
Return on invested capital 13.55% 22.49% 2.52%

Growth

Metric GVA MYRG Engineering & Construction median
Revenue growth (TTM) 21.80% 16.06% 16.67%
EPS growth (last fiscal year) 47.33% 311.48% 13.42%
Revenue growth, 5-year CAGR 4.43% 10.23% 11.76%
Net income growth, 5-year CAGR 0.00% 15.04% 0.00%

Health

Metric GVA MYRG Engineering & Construction median
Debt to equity 1.94 0.01 0.40
Current ratio 1.01 1.40 1.39
Net debt to EBITDA 1.64 (0.39) 0.38

Dividend

Metric GVA MYRG Engineering & Construction median
Dividend yield 0.47% — 0.63%
Payout ratio — — 0.17

Size

Metric GVA MYRG Engineering & Construction median
Market cap 4.76b 4.45b 1.09b

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