Sterling Infrastructure, Inc. (STRL) vs Tetra Tech, Inc. (TTEK)

Sterling Infrastructure, Inc. and Tetra Tech, Inc. are both Engineering & Construction companies. Sterling Infrastructure, Inc. is the larger, with a market value of $16.1B against $8.6B — 1.9× the size. Tetra Tech, Inc. trades at the lower P/E: 20.3× against 36.4×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 60.8% against −7.61%. Sterling Infrastructure, Inc. has the higher net margin (12.6% vs 8.60%) and the higher return on invested capital (31.1% vs 15.8%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 13 and Tetra Tech, Inc. on 9.

Valuation

Metric STRL TTEK Engineering & Construction median
P/E 36.38 20.31 28.59
P/S 4.57 1.73 1.15
P/B 11.31 4.73 3.96
Price to free cash flow 32.20 15.97 25.24
EV/EBITDA 22.41 13.58 14.87
EV/Sales 4.52 1.89 1.42
Earnings yield 2.75% 4.92% 2.47%
Free cash flow yield 3.11% 6.26% 1.91%

Profitability

Metric STRL TTEK Engineering & Construction median
Gross margin 23.81% 18.78% 18.76%
Operating margin 17.52% 12.07% 6.26%
Net margin 12.55% 8.60% 2.23%
Free cash flow margin 14.20% 10.81% 1.83%
Return on equity 37.49% 24.26% 7.90%
Return on assets 16.11% 9.97% 0.87%
Return on invested capital 31.11% 15.78% 2.52%

Growth

Metric STRL TTEK Engineering & Construction median
Revenue growth (TTM) 60.83% (7.61%) 16.67%
EPS growth (last fiscal year) 13.42% (24.39%) —
Revenue growth, 5-year CAGR 15.21% 12.69% 11.76%
Net income growth, 5-year CAGR 46.98% 7.34% 0.00%

Health

Metric STRL TTEK Engineering & Construction median
Debt to equity 0.20 0.43 0.40
Current ratio 1.11 1.18 1.39
Net debt to EBITDA (0.21) 1.00 0.38

Dividend

Metric STRL TTEK Engineering & Construction median
Dividend yield — 0.63% 0.65%
Payout ratio 0.00 0.17 0.00

Size

Metric STRL TTEK Engineering & Construction median
Market cap 16.06b 8.61b 1.31b

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