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 $4.8B against $4.1B — 1.2× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Tutor Perini Corporation trades at 32.9×. 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%). Both pay a dividend; Granite Construction Incorporated yields more (0.47% vs 0.35%). Across the 22 metrics below, Tutor Perini Corporation leads on 17 and Granite Construction Incorporated on 5.

Valuation

Metric GVA TPC Engineering & Construction median
P/E n/m 32.90 29.24
P/S 0.97 0.69 1.09
P/B 5.97 3.06 3.39
Price to free cash flow 9.47 6.48 24.81
EV/EBITDA 10.77 10.43 14.38
EV/Sales 1.10 0.55 1.37
Earnings yield (3.44%) 3.04% 2.83%
Free cash flow yield 10.56% 15.43% 2.28%

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% 13.42%
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 0.47% 0.35% 0.63%
Payout ratio — 0.12 0.17

Size

Metric GVA TPC Engineering & Construction median
Market cap 4.76b 4.13b 1.09b

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