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

Sterling Infrastructure, Inc. and Tetra Tech, Inc. are both Engineering & Construction companies. Tetra Tech, Inc. is the larger, with a market value of $10.4B against $7.5B — 1.4× the size. Sterling Infrastructure, Inc. trades at the lower P/E: 13.2× against 24.2×. Sterling Infrastructure, Inc. grew revenue faster over the last twelve months: 93.1% against −7.61%. Sterling Infrastructure, Inc. has the higher net margin (12.9% vs 8.60%) and the higher return on invested capital (34.2% vs 15.8%). Across the 22 metrics below, Sterling Infrastructure, Inc. leads on 21 and Tetra Tech, Inc. on 1.

Valuation

Metric STRL TTEK Engineering & Construction median
P/E 13.25 24.23 27.65
P/S 1.75 2.06 0.85
P/B 4.84 5.64 3.04
Price to free cash flow 15.77 19.05 19.05
EV/EBITDA 8.39 15.98 11.89
EV/Sales 1.72 2.22 1.20
Earnings yield 7.55% 4.13% 2.77%
Free cash flow yield 6.34% 5.25% 2.00%

Profitability

Metric STRL TTEK Engineering & Construction median
Gross margin 23.78% 18.78% 18.76%
Operating margin 18.17% 12.07% 6.43%
Net margin 12.85% 8.60% 2.14%
Free cash flow margin 11.06% 10.81% 1.12%
Return on equity 42.00% 24.26% 6.05%
Return on assets 18.34% 9.97% 1.19%
Return on invested capital 34.18% 15.78% 2.52%

Growth

Metric STRL TTEK Engineering & Construction median
Revenue growth (TTM) 93.14% (7.61%) 18.09%
EPS growth (last fiscal year) 13.42% (24.39%) 13.42%
Revenue growth, 5-year CAGR 15.21% 12.69% 12.23%
Net income growth, 5-year CAGR 46.98% 7.34% 0.00%

Health

Metric STRL TTEK Engineering & Construction median
Debt to equity 0.06 0.43 0.41
Current ratio 1.04 1.18 1.37
Net debt to EBITDA (0.21) 1.00 0.38

Dividend

Metric STRL TTEK Engineering & Construction median
Dividend yield — 0.68% 0.68%
Payout ratio — 0.17 0.18

Size

Metric STRL TTEK Engineering & Construction median
Market cap 7.45b 10.39b 1.13b

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