IES Holdings, Inc. (IESC) vs Sterling Infrastructure, Inc. (STRL)

IES Holdings, Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Sterling Infrastructure, Inc. is the larger, with a market value of $7.5B against $5.9B — 1.3× the size. IES Holdings, Inc. trades at the lower P/E: 12.8× against 13.2×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 93.1% against 22.7%. Sterling Infrastructure, Inc. has the higher net margin (12.9% vs 11.4%) and the lower return on invested capital (34.2% vs 36.6%). Across the 22 metrics below, IES Holdings, Inc. leads on 15 and Sterling Infrastructure, Inc. on 7.

Valuation

Metric IESC STRL Engineering & Construction median
P/E 12.77 13.25 27.65
P/S 1.46 1.75 0.85
P/B 4.72 4.84 3.04
Price to free cash flow 25.34 15.77 19.05
EV/EBITDA 9.93 8.39 11.89
EV/Sales 1.37 1.72 1.20
Earnings yield 7.83% 7.55% 2.77%
Free cash flow yield 3.95% 6.34% 2.00%

Profitability

Metric IESC STRL Engineering & Construction median
Gross margin 26.31% 23.78% 18.76%
Operating margin 12.37% 18.17% 6.43%
Net margin 11.40% 12.85% 2.14%
Free cash flow margin 5.75% 11.06% 1.12%
Return on equity 45.20% 42.00% 6.05%
Return on assets 24.26% 18.34% 1.19%
Return on invested capital 36.61% 34.18% 2.52%

Growth

Metric IESC STRL Engineering & Construction median
Revenue growth (TTM) 22.66% 93.14% 18.09%
EPS growth (last fiscal year) 51.87% 13.42% 13.42%
Revenue growth, 5-year CAGR 23.14% 15.21% 12.23%
Net income growth, 5-year CAGR 49.32% 46.98% 0.00%

Health

Metric IESC STRL Engineering & Construction median
Debt to equity 0.00 0.06 0.41
Current ratio 1.63 1.04 1.37
Net debt to EBITDA (0.54) (0.21) 0.38

Dividend

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

Size

Metric IESC STRL Engineering & Construction median
Market cap 5.86b 7.45b 1.13b

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