KBR, Inc. (KBR) vs Primoris Services Corporation (PRIM)

KBR, Inc. and Primoris Services Corporation are both Engineering & Construction companies. KBR, Inc. is the larger, with a market value of $4.4B against $3.9B — 1.1× the size. KBR, Inc. trades at the lower P/E: 10.4× against 28.2×. Primoris Services Corporation grew revenue faster over the last twelve months: 5.12% against −3.64%. KBR, Inc. has the higher net margin (5.49% vs 1.92%) and the higher return on invested capital (11.8% vs 6.07%). Both pay a dividend; KBR, Inc. yields more (0.92% vs 0.66%). Across the 23 metrics below, KBR, Inc. leads on 13 and Primoris Services Corporation on 10.

Valuation

Metric KBR PRIM Engineering & Construction median
P/E 10.40 28.16 28.59
P/S 0.56 0.54 1.15
P/B 2.65 2.44 3.96
Price to free cash flow 12.40 33.13 25.24
EV/EBITDA 7.32 14.31 14.87
EV/Sales 0.85 0.62 1.42
Earnings yield 9.61% 3.55% 2.47%
Free cash flow yield 8.07% 3.02% 1.91%

Profitability

Metric KBR PRIM Engineering & Construction median
Gross margin 14.48% 8.62% 18.76%
Operating margin 9.50% 2.91% 6.26%
Net margin 5.49% 1.92% 2.23%
Free cash flow margin 4.64% 1.63% 1.83%
Return on equity 27.08% 8.89% 7.90%
Return on assets 6.30% 3.04% 0.87%
Return on invested capital 11.82% 6.07% 2.52%

Growth

Metric KBR PRIM Engineering & Construction median
Revenue growth (TTM) (3.64%) 5.12% 16.67%
EPS growth (last fiscal year) 15.05% 51.66% —
Revenue growth, 5-year CAGR 6.19% 16.75% 11.76%
Net income growth, 5-year CAGR 0.00% 21.23% 0.00%

Health

Metric KBR PRIM Engineering & Construction median
Debt to equity 1.55 0.50 0.40
Current ratio 1.15 1.18 1.39
Net debt to EBITDA 2.21 (0.13) 0.38

Dividend

Metric KBR PRIM Engineering & Construction median
Dividend yield 0.92% 0.66% 0.65%
Payout ratio 0.44 0.10 0.00

Size

Metric KBR PRIM Engineering & Construction median
Market cap 4.41b 3.89b 1.31b

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