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

Granite Construction Incorporated and Construction Partners, Inc. are both Engineering & Construction companies. Granite Construction Incorporated is the larger, with a market value of $5.3B against $4.4B — 1.2× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Construction Partners, Inc. trades at 30.1×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against 25.1%. Construction Partners, Inc. has the higher net margin (4.10% vs −4.99%) and the lower return on invested capital (6.82% vs 12.1%). Across the 21 metrics below, Granite Construction Incorporated leads on 11 and Construction Partners, Inc. on 10.

Valuation

Metric GVA ROAD Engineering & Construction median
P/E n/m 30.09 27.18
P/S 1.00 1.24 0.91
P/B 5.33 4.15 3.28
Price to free cash flow 11.03 20.94 18.97
EV/EBITDA 10.76 12.63 12.32
EV/Sales 1.20 1.73 1.20
Earnings yield (4.88%) 3.32% 2.69%
Free cash flow yield 9.06% 4.78% 1.84%

Profitability

Metric GVA ROAD Engineering & Construction median
Gross margin 16.08% 15.76% 18.76%
Operating margin 7.45% 8.57% 6.43%
Net margin (4.99%) 4.10% 2.14%
Free cash flow margin 9.09% 5.94% 1.12%
Return on equity (24.04%) 15.05% 6.05%
Return on assets (6.14%) 4.36% 0.96%
Return on invested capital 12.10% 6.82% 2.52%

Growth

Metric GVA ROAD Engineering & Construction median
Revenue growth (TTM) 25.11% 41.92% 18.78%
EPS growth (last fiscal year) 47.33% 40.46% 13.42%
Revenue growth, 5-year CAGR 4.43% 29.05% 12.23%
Net income growth, 5-year CAGR 0.00% 20.36% 0.00%

Health

Metric GVA ROAD Engineering & Construction median
Debt to equity 1.56 1.72 0.41
Current ratio 1.11 1.57 1.37
Net debt to EBITDA 1.64 3.86 0.38

Dividend

Metric GVA ROAD Engineering & Construction median
Dividend yield 0.43% — 0.68%
Payout ratio — — 0.18

Size

Metric GVA ROAD Engineering & Construction median
Market cap 5.34b 4.40b 1.02b

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