Granite Construction Incorporated (GVA) vs Primoris Services Corporation (PRIM)

Granite Construction Incorporated and Primoris Services Corporation are both Engineering & Construction companies. Granite Construction Incorporated is the larger, with a market value of $4.9B against $3.9B — 1.2× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Primoris Services Corporation trades at 28.2×. Granite Construction Incorporated grew revenue faster over the last twelve months: 21.8% against 5.12%. Primoris Services Corporation has the higher net margin (1.92% vs −3.32%) and the lower return on invested capital (6.07% vs 13.6%). Both pay a dividend; Granite Construction Incorporated yields more (1.10% vs 0.66%). Across the 22 metrics below, Primoris Services Corporation leads on 13 and Granite Construction Incorporated on 9.

Valuation

Metric GVA PRIM Engineering & Construction median
P/E n/m 28.16 28.59
P/S 1.01 0.54 1.15
P/B 6.25 2.44 3.96
Price to free cash flow 9.92 33.13 25.24
EV/EBITDA 11.22 14.31 14.87
EV/Sales 1.14 0.62 1.42
Earnings yield (3.28%) 3.55% 2.47%
Free cash flow yield 10.08% 3.02% 1.91%

Profitability

Metric GVA PRIM Engineering & Construction median
Gross margin 15.64% 8.62% 18.76%
Operating margin 6.33% 2.91% 6.26%
Net margin (3.32%) 1.92% 2.23%
Free cash flow margin 10.22% 1.63% 1.83%
Return on equity (17.18%) 8.89% 7.90%
Return on assets (4.18%) 3.04% 0.87%
Return on invested capital 13.55% 6.07% 2.52%

Growth

Metric GVA PRIM Engineering & Construction median
Revenue growth (TTM) 21.80% 5.12% 16.67%
EPS growth (last fiscal year) 47.33% 51.66% —
Revenue growth, 5-year CAGR 4.43% 16.75% 11.76%
Net income growth, 5-year CAGR 0.00% 21.23% 0.00%

Health

Metric GVA PRIM Engineering & Construction median
Debt to equity 1.94 0.50 0.40
Current ratio 1.01 1.18 1.39
Net debt to EBITDA 1.64 (0.13) 0.38

Dividend

Metric GVA PRIM Engineering & Construction median
Dividend yield 1.10% 0.66% 0.65%
Payout ratio 0.54 0.10 0.00

Size

Metric GVA PRIM Engineering & Construction median
Market cap 4.85b 3.89b 1.31b

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