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 $17.3B against $7.5B — 2.3× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 13.2× against 51.3×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 93.1% against 20.1%. Sterling Infrastructure, Inc. has the higher net margin (12.9% vs 2.38%) and the higher return on invested capital (34.2% vs 7.19%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 19 and Jacobs Solutions Inc. on 3.

Valuation

Metric J STRL Engineering & Construction median
P/E 51.28 13.25 27.65
P/S 1.22 1.75 0.85
P/B 5.33 4.84 3.04
Price to free cash flow 26.70 15.77 19.05
EV/EBITDA 23.29 8.39 11.89
EV/Sales 1.45 1.72 1.20
Earnings yield 1.95% 7.55% 2.77%
Free cash flow yield 3.75% 6.34% 2.00%

Profitability

Metric J STRL Engineering & Construction median
Gross margin 22.07% 23.78% 18.76%
Operating margin 4.57% 18.17% 6.43%
Net margin 2.38% 12.85% 2.14%
Free cash flow margin 4.56% 11.06% 1.12%
Return on equity 9.56% 42.00% 6.05%
Return on assets 2.92% 18.34% 1.19%
Return on invested capital 7.19% 34.18% 2.52%

Growth

Metric J STRL Engineering & Construction median
Revenue growth (TTM) 20.14% 93.14% 18.09%
EPS growth (last fiscal year) (62.34%) 13.42% 13.42%
Revenue growth, 5-year CAGR (2.38%) 15.21% 12.23%
Net income growth, 5-year CAGR (10.07%) 46.98% 0.00%

Health

Metric J STRL Engineering & Construction median
Debt to equity 1.10 0.06 0.41
Current ratio 1.29 1.04 1.37
Net debt to EBITDA 0.91 (0.21) 0.38

Dividend

Metric J STRL Engineering & Construction median
Dividend yield 0.95% — 0.68%
Payout ratio 0.49 — 0.18

Size

Metric J STRL Engineering & Construction median
Market cap 17.27b 7.45b 1.13b

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