Granite Construction Incorporated (GVA) vs Construction Partners, Inc. (ROAD)

Granite Construction Incorporated and Construction Partners, Inc. are both Engineering & Construction companies. Granite Construction Incorporated and Construction Partners, Inc. are of similar size ($5.1B and $4.9B). Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Construction Partners, Inc. trades at 36.5×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against 21.8%. Construction Partners, Inc. has the higher net margin (4.10% vs −3.32%) and the lower return on invested capital (6.82% vs 13.6%). Across the 21 metrics below, Construction Partners, Inc. leads on 12 and Granite Construction Incorporated on 9.

Valuation

Metric GVA ROAD Engineering & Construction median
P/E n/m 36.46 28.59
P/S 1.01 1.51 1.15
P/B 6.25 5.03 3.96
Price to free cash flow 9.92 25.37 25.24
EV/EBITDA 11.22 14.55 14.87
EV/Sales 1.14 1.99 1.42
Earnings yield (3.28%) 2.74% 2.47%
Free cash flow yield 10.08% 3.94% 1.91%

Profitability

Metric GVA ROAD Engineering & Construction median
Gross margin 15.64% 15.76% 18.76%
Operating margin 6.33% 8.57% 6.26%
Net margin (3.32%) 4.10% 2.23%
Free cash flow margin 10.22% 5.94% 1.83%
Return on equity (17.18%) 15.05% 7.90%
Return on assets (4.18%) 4.36% 0.87%
Return on invested capital 13.55% 6.82% 2.52%

Growth

Metric GVA ROAD Engineering & Construction median
Revenue growth (TTM) 21.80% 41.92% 16.67%
EPS growth (last fiscal year) 47.33% 40.46% —
Revenue growth, 5-year CAGR 4.43% 29.05% 11.76%
Net income growth, 5-year CAGR 0.00% 20.36% 0.00%

Health

Metric GVA ROAD Engineering & Construction median
Debt to equity 1.94 1.72 0.40
Current ratio 1.01 1.57 1.39
Net debt to EBITDA 1.64 3.86 0.38

Dividend

Metric GVA ROAD Engineering & Construction median
Dividend yield 1.10% — 0.65%
Payout ratio 0.54 0.00 0.00

Size

Metric GVA ROAD Engineering & Construction median
Market cap 4.85b 5.10b 1.31b

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