Granite Construction Incorporated (GVA) vs Tetra Tech, Inc. (TTEK)

Granite Construction Incorporated and Tetra Tech, Inc. are both Engineering & Construction companies. Tetra Tech, Inc. is the larger, with a market value of $10.4B against $5.3B — 1.9× the size. Granite Construction Incorporated has negative trailing earnings, so its P/E is not meaningful; Tetra Tech, Inc. trades at 24.2×. Granite Construction Incorporated grew revenue faster over the last twelve months: 25.1% against −7.61%. Tetra Tech, Inc. has the higher net margin (8.60% vs −4.99%) and the higher return on invested capital (15.8% vs 12.1%). Both pay a dividend; Tetra Tech, Inc. yields more (0.68% vs 0.43%). Across the 22 metrics below, Tetra Tech, Inc. leads on 14 and Granite Construction Incorporated on 8.

Valuation

Metric GVA TTEK Engineering & Construction median
P/E n/m 24.23 27.65
P/S 1.01 2.06 0.85
P/B 5.35 5.64 3.04
Price to free cash flow 11.08 19.05 19.05
EV/EBITDA 10.79 15.98 11.89
EV/Sales 1.20 2.22 1.20
Earnings yield (5.00%) 4.13% 2.77%
Free cash flow yield 9.03% 5.25% 2.00%

Profitability

Metric GVA TTEK Engineering & Construction median
Gross margin 16.08% 18.78% 18.76%
Operating margin 7.45% 12.07% 6.43%
Net margin (4.99%) 8.60% 2.14%
Free cash flow margin 9.09% 10.81% 1.12%
Return on equity (24.04%) 24.26% 6.05%
Return on assets (6.14%) 9.97% 1.19%
Return on invested capital 12.10% 15.78% 2.52%

Growth

Metric GVA TTEK Engineering & Construction median
Revenue growth (TTM) 25.11% (7.61%) 18.09%
EPS growth (last fiscal year) 47.33% (24.39%) 13.42%
Revenue growth, 5-year CAGR 4.43% 12.69% 12.23%
Net income growth, 5-year CAGR 0.00% 7.34% 0.00%

Health

Metric GVA TTEK Engineering & Construction median
Debt to equity 1.56 0.43 0.41
Current ratio 1.11 1.18 1.37
Net debt to EBITDA 1.64 1.00 0.38

Dividend

Metric GVA TTEK Engineering & Construction median
Dividend yield 0.43% 0.68% 0.68%
Payout ratio — 0.17 0.18

Size

Metric GVA TTEK Engineering & Construction median
Market cap 5.34b 10.39b 1.13b

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