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 $76.7B against $17.3B — 4.4× the size. Quanta Services, Inc. trades at the lower P/E: 45.3× against 51.3×. Quanta Services, Inc. grew revenue faster over the last twelve months: 37.1% against 20.1%. Quanta Services, Inc. has the higher net margin (4.51% vs 2.38%) and the higher return on invested capital (10.4% vs 7.19%). Both pay a dividend; Jacobs Solutions Inc. yields more (0.95% vs 0.09%). Across the 23 metrics below, Quanta Services, Inc. leads on 16 and Jacobs Solutions Inc. on 7.

Valuation

Metric J PWR Engineering & Construction median
P/E 51.28 45.31 27.65
P/S 1.22 2.06 0.85
P/B 5.33 7.25 3.04
Price to free cash flow 26.70 24.81 19.05
EV/EBITDA 23.29 22.39 11.89
EV/Sales 1.45 2.19 1.20
Earnings yield 1.95% 2.21% 2.77%
Free cash flow yield 3.75% 4.03% 2.00%

Profitability

Metric J PWR Engineering & Construction median
Gross margin 22.07% 15.76% 18.76%
Operating margin 4.57% 6.83% 6.43%
Net margin 2.38% 4.51% 2.14%
Free cash flow margin 4.56% 8.33% 1.12%
Return on equity 9.56% 17.68% 6.05%
Return on assets 2.92% 6.06% 1.19%
Return on invested capital 7.19% 10.40% 2.52%

Growth

Metric J PWR Engineering & Construction median
Revenue growth (TTM) 20.14% 37.13% 18.09%
EPS growth (last fiscal year) (62.34%) 12.77% 13.42%
Revenue growth, 5-year CAGR (2.38%) 20.52% 12.23%
Net income growth, 5-year CAGR (10.07%) 18.21% 0.00%

Health

Metric J PWR Engineering & Construction median
Debt to equity 1.10 0.66 0.41
Current ratio 1.29 1.16 1.37
Net debt to EBITDA 0.91 2.20 0.38

Dividend

Metric J PWR Engineering & Construction median
Dividend yield 0.95% 0.09% 0.68%
Payout ratio 0.49 0.04 0.18

Size

Metric J PWR Engineering & Construction median
Market cap 17.27b 76.70b 1.13b

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