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 $4.9B against $4.4B — 1.1× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Tutor Perini Corporation trades at 35.6×. Tutor Perini Corporation grew revenue faster over the last twelve months: 24.7% against 21.8%. Tutor Perini Corporation has the higher net margin (2.08% vs −3.32%) and the higher return on invested capital (32.4% vs 13.6%). Across the 21 metrics below, Tutor Perini Corporation leads on 16 and Granite Construction Incorporated on 5.

Valuation

Metric GVA TPC Engineering & Construction median
P/E n/m 35.58 28.59
P/S 1.01 0.74 1.15
P/B 6.25 3.31 3.96
Price to free cash flow 9.92 7.01 25.24
EV/EBITDA 11.22 11.49 14.87
EV/Sales 1.14 0.60 1.42
Earnings yield (3.28%) 2.81% 2.47%
Free cash flow yield 10.08% 14.27% 1.91%

Profitability

Metric GVA TPC Engineering & Construction median
Gross margin 15.64% 11.48% 18.76%
Operating margin 6.33% 4.49% 6.26%
Net margin (3.32%) 2.08% 2.23%
Free cash flow margin 10.22% 10.59% 1.83%
Return on equity (17.18%) 9.62% 7.90%
Return on assets (4.18%) 2.42% 0.87%
Return on invested capital 13.55% 32.39% 2.52%

Growth

Metric GVA TPC Engineering & Construction median
Revenue growth (TTM) 21.80% 24.70% 16.67%
EPS growth (last fiscal year) 47.33% 148.24% —
Revenue growth, 5-year CAGR 4.43% 0.83% 11.76%
Net income growth, 5-year CAGR 0.00% (5.79%) 0.00%

Health

Metric GVA TPC Engineering & Construction median
Debt to equity 1.94 0.30 0.40
Current ratio 1.01 1.29 1.39
Net debt to EBITDA 1.64 (2.10) 0.38

Dividend

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

Size

Metric GVA TPC Engineering & Construction median
Market cap 4.85b 4.38b 1.31b

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