Construction Partners, Inc. (ROAD) vs Tutor Perini Corporation (TPC)

Construction Partners, Inc. and Tutor Perini Corporation are both Engineering & Construction companies. Construction Partners, Inc. is the larger, with a market value of $4.7B against $4.1B — 1.1× the size. Construction Partners, Inc. trades at the lower P/E: 32.2× against 32.9×. Construction Partners, Inc. grew revenue faster over the last twelve months: 41.9% against 24.7%. Construction Partners, Inc. has the higher net margin (4.10% vs 2.08%) and the lower return on invested capital (6.82% vs 32.4%). Across the 22 metrics below, Construction Partners, Inc. leads on 11 and Tutor Perini Corporation on 11.

Valuation

Metric ROAD TPC Engineering & Construction median
P/E 32.18 32.90 29.24
P/S 1.33 0.69 1.09
P/B 4.44 3.06 3.39
Price to free cash flow 22.39 6.48 24.81
EV/EBITDA 13.26 10.43 14.38
EV/Sales 1.82 0.55 1.37
Earnings yield 3.11% 3.04% 2.83%
Free cash flow yield 4.47% 15.43% 2.28%

Profitability

Metric ROAD TPC Engineering & Construction median
Gross margin 15.76% 11.48% 18.76%
Operating margin 8.57% 4.49% 6.26%
Net margin 4.10% 2.08% 2.23%
Free cash flow margin 5.94% 10.59% 1.83%
Return on equity 15.05% 9.62% 7.90%
Return on assets 4.36% 2.42% 0.87%
Return on invested capital 6.82% 32.39% 2.52%

Growth

Metric ROAD TPC Engineering & Construction median
Revenue growth (TTM) 41.92% 24.70% 16.67%
EPS growth (last fiscal year) 40.46% 148.24% 13.42%
Revenue growth, 5-year CAGR 29.05% 0.83% 11.76%
Net income growth, 5-year CAGR 20.36% (5.79%) 0.00%

Health

Metric ROAD TPC Engineering & Construction median
Debt to equity 1.72 0.30 0.40
Current ratio 1.57 1.29 1.39
Net debt to EBITDA 3.86 (2.10) 0.38

Dividend

Metric ROAD TPC Engineering & Construction median
Dividend yield — 0.35% 0.63%
Payout ratio — 0.12 0.17

Size

Metric ROAD TPC Engineering & Construction median
Market cap 4.72b 4.13b 1.09b

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