Jacobs Solutions Inc. (J) vs Tetra Tech, Inc. (TTEK)

Jacobs Solutions Inc. and Tetra Tech, Inc. are both Engineering & Construction companies. Jacobs Solutions Inc. is the larger, with a market value of $17.3B against $10.4B — 1.7× the size. Tetra Tech, Inc. trades at the lower P/E: 24.2× against 51.3×. Jacobs Solutions Inc. grew revenue faster over the last twelve months: 20.1% against −7.61%. Tetra Tech, Inc. has the higher net margin (8.60% vs 2.38%) and the higher return on invested capital (15.8% vs 7.19%). Both pay a dividend; Jacobs Solutions Inc. yields more (0.95% vs 0.68%). Across the 23 metrics below, Tetra Tech, Inc. leads on 15 and Jacobs Solutions Inc. on 8.

Valuation

Metric J TTEK Engineering & Construction median
P/E 51.28 24.23 27.65
P/S 1.22 2.06 0.85
P/B 5.33 5.64 3.04
Price to free cash flow 26.70 19.05 19.05
EV/EBITDA 23.29 15.98 11.89
EV/Sales 1.45 2.22 1.20
Earnings yield 1.95% 4.13% 2.77%
Free cash flow yield 3.75% 5.25% 2.00%

Profitability

Metric J TTEK Engineering & Construction median
Gross margin 22.07% 18.78% 18.76%
Operating margin 4.57% 12.07% 6.43%
Net margin 2.38% 8.60% 2.14%
Free cash flow margin 4.56% 10.81% 1.12%
Return on equity 9.56% 24.26% 6.05%
Return on assets 2.92% 9.97% 1.19%
Return on invested capital 7.19% 15.78% 2.52%

Growth

Metric J TTEK Engineering & Construction median
Revenue growth (TTM) 20.14% (7.61%) 18.09%
EPS growth (last fiscal year) (62.34%) (24.39%) 13.42%
Revenue growth, 5-year CAGR (2.38%) 12.69% 12.23%
Net income growth, 5-year CAGR (10.07%) 7.34% 0.00%

Health

Metric J TTEK Engineering & Construction median
Debt to equity 1.10 0.43 0.41
Current ratio 1.29 1.18 1.37
Net debt to EBITDA 0.91 1.00 0.38

Dividend

Metric J TTEK Engineering & Construction median
Dividend yield 0.95% 0.68% 0.68%
Payout ratio 0.49 0.17 0.18

Size

Metric J TTEK Engineering & Construction median
Market cap 17.27b 10.39b 1.13b

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