Primoris Services Corporation (PRIM) vs Construction Partners, Inc. (ROAD)

Primoris Services Corporation and Construction Partners, Inc. are both Engineering & Construction companies. Construction Partners, Inc. is the larger, with a market value of $5.1B against $3.9B — 1.3× the size. Primoris Services Corporation trades at the lower P/E: 28.2× against 36.5×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against 5.12%. Construction Partners, Inc. has the higher net margin (4.10% vs 1.92%) and the higher return on invested capital (6.82% vs 6.07%). Across the 22 metrics below, Construction Partners, Inc. leads on 12 and Primoris Services Corporation on 10.

Valuation

Metric PRIM ROAD Engineering & Construction median
P/E 28.16 36.46 28.59
P/S 0.54 1.51 1.15
P/B 2.44 5.03 3.96
Price to free cash flow 33.13 25.37 25.24
EV/EBITDA 14.31 14.55 14.87
EV/Sales 0.62 1.99 1.42
Earnings yield 3.55% 2.74% 2.47%
Free cash flow yield 3.02% 3.94% 1.91%

Profitability

Metric PRIM ROAD Engineering & Construction median
Gross margin 8.62% 15.76% 18.76%
Operating margin 2.91% 8.57% 6.26%
Net margin 1.92% 4.10% 2.23%
Free cash flow margin 1.63% 5.94% 1.83%
Return on equity 8.89% 15.05% 7.90%
Return on assets 3.04% 4.36% 0.87%
Return on invested capital 6.07% 6.82% 2.52%

Growth

Metric PRIM ROAD Engineering & Construction median
Revenue growth (TTM) 5.12% 41.92% 16.67%
EPS growth (last fiscal year) 51.66% 40.46% —
Revenue growth, 5-year CAGR 16.75% 29.05% 11.76%
Net income growth, 5-year CAGR 21.23% 20.36% 0.00%

Health

Metric PRIM ROAD Engineering & Construction median
Debt to equity 0.50 1.72 0.40
Current ratio 1.18 1.57 1.39
Net debt to EBITDA (0.13) 3.86 0.38

Dividend

Metric PRIM ROAD Engineering & Construction median
Dividend yield 0.66% — 0.65%
Payout ratio 0.10 0.00 0.00

Size

Metric PRIM ROAD Engineering & Construction median
Market cap 3.89b 5.10b 1.31b

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