Granite Construction Incorporated (GVA) vs Sterling Infrastructure, Inc. (STRL)

Granite Construction Incorporated and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Sterling Infrastructure, Inc. is the larger, with a market value of $7.5B against $5.3B — 1.4× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Sterling Infrastructure, Inc. trades at 13.2×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 93.1% against 25.1%. Sterling Infrastructure, Inc. has the higher net margin (12.9% vs −4.99%) and the higher return on invested capital (34.2% vs 12.1%). Across the 21 metrics below, Sterling Infrastructure, Inc. leads on 15 and Granite Construction Incorporated on 6.

Valuation

Metric GVA STRL Engineering & Construction median
P/E n/m 13.25 27.65
P/S 1.01 1.75 0.85
P/B 5.35 4.84 3.04
Price to free cash flow 11.08 15.77 19.05
EV/EBITDA 10.79 8.39 11.89
EV/Sales 1.20 1.72 1.20
Earnings yield (5.00%) 7.55% 2.77%
Free cash flow yield 9.03% 6.34% 2.00%

Profitability

Metric GVA STRL Engineering & Construction median
Gross margin 16.08% 23.78% 18.76%
Operating margin 7.45% 18.17% 6.43%
Net margin (4.99%) 12.85% 2.14%
Free cash flow margin 9.09% 11.06% 1.12%
Return on equity (24.04%) 42.00% 6.05%
Return on assets (6.14%) 18.34% 1.19%
Return on invested capital 12.10% 34.18% 2.52%

Growth

Metric GVA STRL Engineering & Construction median
Revenue growth (TTM) 25.11% 93.14% 18.09%
EPS growth (last fiscal year) 47.33% 13.42% 13.42%
Revenue growth, 5-year CAGR 4.43% 15.21% 12.23%
Net income growth, 5-year CAGR 0.00% 46.98% 0.00%

Health

Metric GVA STRL Engineering & Construction median
Debt to equity 1.56 0.06 0.41
Current ratio 1.11 1.04 1.37
Net debt to EBITDA 1.64 (0.21) 0.38

Dividend

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

Size

Metric GVA STRL Engineering & Construction median
Market cap 5.34b 7.45b 1.13b

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