Quanta Services, Inc. (PWR) vs Tetra Tech, Inc. (TTEK)

Quanta Services, Inc. and Tetra Tech, Inc. are both Engineering & Construction companies. Quanta Services, Inc. is the larger, with a market value of $76.7B against $10.4B — 7.4× the size. Tetra Tech, Inc. trades at the lower P/E: 24.2× against 45.3×. Quanta Services, Inc. grew revenue faster over the last twelve months: 37.1% against −7.61%. Tetra Tech, Inc. has the higher net margin (8.60% vs 4.51%) and the higher return on invested capital (15.8% vs 10.4%). Both pay a dividend; Tetra Tech, Inc. yields more (0.68% vs 0.09%). Across the 23 metrics below, Tetra Tech, Inc. leads on 18 and Quanta Services, Inc. on 5.

Valuation

Metric PWR TTEK Engineering & Construction median
P/E 45.31 24.23 27.65
P/S 2.06 2.06 0.85
P/B 7.25 5.64 3.04
Price to free cash flow 24.81 19.05 19.05
EV/EBITDA 22.39 15.98 11.89
EV/Sales 2.19 2.22 1.20
Earnings yield 2.21% 4.13% 2.77%
Free cash flow yield 4.03% 5.25% 2.00%

Profitability

Metric PWR TTEK Engineering & Construction median
Gross margin 15.76% 18.78% 18.76%
Operating margin 6.83% 12.07% 6.43%
Net margin 4.51% 8.60% 2.14%
Free cash flow margin 8.33% 10.81% 1.12%
Return on equity 17.68% 24.26% 6.05%
Return on assets 6.06% 9.97% 1.19%
Return on invested capital 10.40% 15.78% 2.52%

Growth

Metric PWR TTEK Engineering & Construction median
Revenue growth (TTM) 37.13% (7.61%) 18.09%
EPS growth (last fiscal year) 12.77% (24.39%) 13.42%
Revenue growth, 5-year CAGR 20.52% 12.69% 12.23%
Net income growth, 5-year CAGR 18.21% 7.34% 0.00%

Health

Metric PWR TTEK Engineering & Construction median
Debt to equity 0.66 0.43 0.41
Current ratio 1.16 1.18 1.37
Net debt to EBITDA 2.20 1.00 0.38

Dividend

Metric PWR TTEK Engineering & Construction median
Dividend yield 0.09% 0.68% 0.68%
Payout ratio 0.04 0.17 0.18

Size

Metric PWR TTEK Engineering & Construction median
Market cap 76.70b 10.39b 1.13b

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