Construction Partners, Inc. (ROAD) vs Sterling Infrastructure, Inc. (STRL)

Construction Partners, Inc. and Sterling Infrastructure, Inc. are both Engineering & Construction companies. Sterling Infrastructure, Inc. is the larger, with a market value of $7.5B against $4.4B — 1.7× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 13.2× against 30.2×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 93.1% against 41.9%. Sterling Infrastructure, Inc. has the higher net margin (12.9% vs 4.10%) and the higher return on invested capital (34.2% vs 6.82%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 17 and Construction Partners, Inc. on 5.

Valuation

Metric ROAD STRL Engineering & Construction median
P/E 30.25 13.25 27.65
P/S 1.25 1.75 0.85
P/B 4.18 4.84 3.04
Price to free cash flow 21.05 15.77 19.05
EV/EBITDA 12.68 8.39 11.89
EV/Sales 1.74 1.72 1.20
Earnings yield 3.31% 7.55% 2.77%
Free cash flow yield 4.75% 6.34% 2.00%

Profitability

Metric ROAD STRL Engineering & Construction median
Gross margin 15.76% 23.78% 18.76%
Operating margin 8.57% 18.17% 6.43%
Net margin 4.10% 12.85% 2.14%
Free cash flow margin 5.94% 11.06% 1.12%
Return on equity 15.05% 42.00% 6.05%
Return on assets 4.36% 18.34% 1.19%
Return on invested capital 6.82% 34.18% 2.52%

Growth

Metric ROAD STRL Engineering & Construction median
Revenue growth (TTM) 41.92% 93.14% 18.09%
EPS growth (last fiscal year) 40.46% 13.42% 13.42%
Revenue growth, 5-year CAGR 29.05% 15.21% 12.23%
Net income growth, 5-year CAGR 20.36% 46.98% 0.00%

Health

Metric ROAD STRL Engineering & Construction median
Debt to equity 1.72 0.06 0.41
Current ratio 1.57 1.04 1.37
Net debt to EBITDA 3.86 (0.21) 0.38

Dividend

Metric ROAD STRL Engineering & Construction median
Dividend yield — — 0.68%
Payout ratio — — 0.18

Size

Metric ROAD STRL Engineering & Construction median
Market cap 4.40b 7.45b 1.13b

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