Jacobs Solutions Inc. (J) vs Quanta Services, Inc. (PWR)

Jacobs Solutions Inc. and Quanta Services, Inc. are both Engineering & Construction companies. Quanta Services, Inc. is the larger, with a market value of $97.1B against $15.8B — 6.1× the size. Jacobs Solutions Inc. trades at the lower P/E: 48.7× against 73.2×. Quanta Services, Inc. grew revenue faster over the last twelve months: 26.3% against 20.1%. Quanta Services, Inc. has the higher net margin (4.03% vs 2.38%) and the higher return on invested capital (8.29% vs 7.19%). Both pay a dividend; Jacobs Solutions Inc. yields more (0.80% vs 0.15%). Across the 23 metrics below, Jacobs Solutions Inc. leads on 12 and Quanta Services, Inc. on 11.

Valuation

Metric J PWR Engineering & Construction median
P/E 48.72 73.18 28.59
P/S 1.15 2.96 1.15
P/B 5.01 10.01 3.96
Price to free cash flow 25.10 41.50 25.24
EV/EBITDA 22.11 33.62 14.87
EV/Sales 1.37 3.13 1.42
Earnings yield 2.05% 1.37% 2.47%
Free cash flow yield 3.98% 2.41% 1.91%

Profitability

Metric J PWR Engineering & Construction median
Gross margin 22.07% 15.46% 18.76%
Operating margin 4.57% 6.19% 6.26%
Net margin 2.38% 4.03% 2.23%
Free cash flow margin 4.56% 7.15% 1.83%
Return on equity 9.56% 15.07% 7.90%
Return on assets 2.92% 5.51% 0.87%
Return on invested capital 7.19% 8.29% 2.52%

Growth

Metric J PWR Engineering & Construction median
Revenue growth (TTM) 20.14% 26.30% 16.67%
EPS growth (last fiscal year) (62.34%) 12.77% —
Revenue growth, 5-year CAGR (2.38%) 20.52% 11.76%
Net income growth, 5-year CAGR (10.07%) 18.21% 0.00%

Health

Metric J PWR Engineering & Construction median
Debt to equity 1.10 0.63 0.40
Current ratio 1.29 1.10 1.39
Net debt to EBITDA 0.91 2.20 0.38

Dividend

Metric J PWR Engineering & Construction median
Dividend yield 0.80% 0.15% 0.65%
Payout ratio 0.17 0.08 0.00

Size

Metric J PWR Engineering & Construction median
Market cap 15.84b 97.14b 1.31b

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