Granite Construction Incorporated (GVA) vs Tutor Perini Corporation (TPC)

Granite Construction Incorporated and Tutor Perini Corporation are both Engineering & Construction companies. Granite Construction Incorporated is the larger, with a market value of $5.3B against $4.3B — 1.2× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Tutor Perini Corporation trades at 30.5×. Granite Construction Incorporated grew revenue faster over the last twelve months: 25.1% against 22.6%. Tutor Perini Corporation has the higher net margin (2.25% vs −4.99%) and the higher return on invested capital (64.9% vs 12.1%). Both pay a dividend; Granite Construction Incorporated yields more (0.43% vs 0.33%). Across the 22 metrics below, Tutor Perini Corporation leads on 16 and Granite Construction Incorporated on 6.

Valuation

Metric GVA TPC Engineering & Construction median
P/E n/m 30.50 27.65
P/S 1.01 0.69 0.85
P/B 5.35 3.13 3.04
Price to free cash flow 11.08 6.31 19.05
EV/EBITDA 10.79 8.23 11.89
EV/Sales 1.20 0.52 1.20
Earnings yield (5.00%) 3.28% 2.77%
Free cash flow yield 9.03% 15.85% 2.00%

Profitability

Metric GVA TPC Engineering & Construction median
Gross margin 16.08% 11.75% 18.76%
Operating margin 7.45% 5.64% 6.43%
Net margin (4.99%) 2.25% 2.14%
Free cash flow margin 9.09% 10.89% 1.12%
Return on equity (24.04%) 10.73% 6.05%
Return on assets (6.14%) 2.59% 1.19%
Return on invested capital 12.10% 64.85% 2.52%

Growth

Metric GVA TPC Engineering & Construction median
Revenue growth (TTM) 25.11% 22.55% 18.09%
EPS growth (last fiscal year) 47.33% 148.24% 13.42%
Revenue growth, 5-year CAGR 4.43% 0.83% 12.23%
Net income growth, 5-year CAGR 0.00% (5.79%) 0.00%

Health

Metric GVA TPC Engineering & Construction median
Debt to equity 1.56 0.29 0.41
Current ratio 1.11 1.27 1.37
Net debt to EBITDA 1.64 (2.10) 0.38

Dividend

Metric GVA TPC Engineering & Construction median
Dividend yield 0.43% 0.33% 0.68%
Payout ratio — 0.10 0.18

Size

Metric GVA TPC Engineering & Construction median
Market cap 5.34b 4.30b 1.13b

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