Quanta Services, Inc. (PWR) vs Sterling Infrastructure, Inc. (STRL)

Quanta Services, Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Quanta Services, Inc. is the larger, with a market value of $96.6B against $13.7B — 7.1× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 30.1× against 71.2×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against 26.3%. Sterling Infrastructure, Inc. has the higher net margin (12.6% vs 4.03%) and the higher return on invested capital (31.1% vs 8.29%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 19 and Quanta Services, Inc. on 3.

Valuation

Metric PWR STRL Engineering & Construction median
P/E 71.24 30.14 29.24
P/S 2.88 3.79 1.09
P/B 9.74 9.37 3.39
Price to free cash flow 40.40 26.68 24.81
EV/EBITDA 32.78 18.52 14.38
EV/Sales 3.05 3.74 1.37
Earnings yield 1.40% 3.32% 2.83%
Free cash flow yield 2.48% 3.75% 2.28%

Profitability

Metric PWR STRL Engineering & Construction median
Gross margin 15.46% 23.81% 18.76%
Operating margin 6.19% 17.52% 6.26%
Net margin 4.03% 12.55% 2.23%
Free cash flow margin 7.15% 14.20% 1.83%
Return on equity 15.07% 37.49% 7.90%
Return on assets 5.51% 16.11% 0.87%
Return on invested capital 8.29% 31.11% 2.52%

Growth

Metric PWR STRL Engineering & Construction median
Revenue growth (TTM) 26.30% 60.83% 16.67%
EPS growth (last fiscal year) 12.77% 13.42% 13.42%
Revenue growth, 5-year CAGR 20.52% 15.21% 11.76%
Net income growth, 5-year CAGR 18.21% 46.98% 0.00%

Health

Metric PWR STRL Engineering & Construction median
Debt to equity 0.63 0.20 0.40
Current ratio 1.10 1.11 1.39
Net debt to EBITDA 2.20 (0.21) 0.38

Dividend

Metric PWR STRL Engineering & Construction median
Dividend yield 0.07% — 0.63%
Payout ratio 0.05 — 0.17

Size

Metric PWR STRL Engineering & Construction median
Market cap 96.55b 13.65b 1.09b

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