KBR, Inc. (KBR) vs Construction Partners, Inc. (ROAD)

KBR, Inc. and Construction Partners, Inc. are both Engineering & Construction companies. Construction Partners, Inc. is the larger, with a market value of $5.1B against $4.4B — 1.2× the size. KBR, Inc. trades at the lower P/E: 10.4× against 36.5×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against −3.64%. KBR, Inc. has the higher net margin (5.49% vs 4.10%) and the higher return on invested capital (11.8% vs 6.82%). Across the 22 metrics below, KBR, Inc. leads on 15 and Construction Partners, Inc. on 7.

Valuation

Metric KBR ROAD Engineering & Construction median
P/E 10.40 36.46 28.59
P/S 0.56 1.51 1.15
P/B 2.65 5.03 3.96
Price to free cash flow 12.40 25.37 25.24
EV/EBITDA 7.32 14.55 14.87
EV/Sales 0.85 1.99 1.42
Earnings yield 9.61% 2.74% 2.47%
Free cash flow yield 8.07% 3.94% 1.91%

Profitability

Metric KBR ROAD Engineering & Construction median
Gross margin 14.48% 15.76% 18.76%
Operating margin 9.50% 8.57% 6.26%
Net margin 5.49% 4.10% 2.23%
Free cash flow margin 4.64% 5.94% 1.83%
Return on equity 27.08% 15.05% 7.90%
Return on assets 6.30% 4.36% 0.87%
Return on invested capital 11.82% 6.82% 2.52%

Growth

Metric KBR ROAD Engineering & Construction median
Revenue growth (TTM) (3.64%) 41.92% 16.67%
EPS growth (last fiscal year) 15.05% 40.46% —
Revenue growth, 5-year CAGR 6.19% 29.05% 11.76%
Net income growth, 5-year CAGR 0.00% 20.36% 0.00%

Health

Metric KBR ROAD Engineering & Construction median
Debt to equity 1.55 1.72 0.40
Current ratio 1.15 1.57 1.39
Net debt to EBITDA 2.21 3.86 0.38

Dividend

Metric KBR ROAD Engineering & Construction median
Dividend yield 0.92% — 0.65%
Payout ratio 0.44 0.00 0.00

Size

Metric KBR ROAD Engineering & Construction median
Market cap 4.41b 5.10b 1.31b

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