Jacobs Solutions Inc. (J) vs Sterling Infrastructure, Inc. (STRL)

Jacobs Solutions Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Jacobs Solutions Inc. is the larger, with a market value of $16.6B against $13.7B — 1.2× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 30.1× against 49.7×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against 20.1%. Sterling Infrastructure, Inc. has the higher net margin (12.6% vs 2.38%) and the higher return on invested capital (31.1% vs 7.19%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 16 and Jacobs Solutions Inc. on 6.

Valuation

Metric J STRL Engineering & Construction median
P/E 49.68 30.14 29.24
P/S 1.17 3.79 1.09
P/B 5.11 9.37 3.39
Price to free cash flow 25.59 26.68 24.81
EV/EBITDA 22.48 18.52 14.38
EV/Sales 1.39 3.74 1.37
Earnings yield 2.01% 3.32% 2.83%
Free cash flow yield 3.91% 3.75% 2.28%

Profitability

Metric J STRL Engineering & Construction median
Gross margin 22.07% 23.81% 18.76%
Operating margin 4.57% 17.52% 6.26%
Net margin 2.38% 12.55% 2.23%
Free cash flow margin 4.56% 14.20% 1.83%
Return on equity 9.56% 37.49% 7.90%
Return on assets 2.92% 16.11% 0.87%
Return on invested capital 7.19% 31.11% 2.52%

Growth

Metric J STRL Engineering & Construction median
Revenue growth (TTM) 20.14% 60.83% 16.67%
EPS growth (last fiscal year) (62.34%) 13.42% 13.42%
Revenue growth, 5-year CAGR (2.38%) 15.21% 11.76%
Net income growth, 5-year CAGR (10.07%) 46.98% 0.00%

Health

Metric J STRL Engineering & Construction median
Debt to equity 1.10 0.20 0.40
Current ratio 1.29 1.11 1.39
Net debt to EBITDA 0.91 (0.21) 0.38

Dividend

Metric J STRL Engineering & Construction median
Dividend yield 0.99% — 0.63%
Payout ratio 0.50 — 0.17

Size

Metric J STRL Engineering & Construction median
Market cap 16.62b 13.65b 1.09b

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