WallStSmart

Granite Construction Incorporated (GVA)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Granite Construction Incorporated generates 61% more annual revenue ($4.64B vs $2.88B). STRL leads profitability with a 12.0% profit margin vs 4.0%. GVA appears more attractively valued with a PEG of 0.16. STRL earns a higher WallStSmart Score of 69/100 (B-).

GVA

Buy

64

out of 100

Grade: C+

Growth: 8.7Profit: 5.0Value: 6.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.94

STRL

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 8.0Value: 4.3Quality: 7.0
Piotroski: 4/9Altman Z: 2.39

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GVA3 strengths · Avg: 9.3/10
PEG RatioValuation
0.1610/10

Growing faster than its price suggests

Revenue GrowthGrowth
30.4%10/10

Revenue surging 30.4% year-over-year

EPS GrowthGrowth
25.1%8/10

Earnings expanding 25.1% YoY

STRL4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
91.6%10/10

Revenue surging 91.6% year-over-year

EPS GrowthGrowth
141.4%10/10

Earnings expanding 141.4% YoY

Return on EquityProfitability
29.1%9/10

Every $100 of equity generates 29 in profit

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Areas to Watch

GVA4 concerns · Avg: 3.5/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.944/10

Grey zone — moderate risk

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Debt/EquityHealth
1.323/10

Elevated debt levels

STRL2 concerns · Avg: 2.0/10
P/E RatioValuation
76.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.4x2/10

Trading at 24.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GVA

The strongest argument for GVA centers on PEG Ratio, Revenue Growth, EPS Growth. Revenue growth of 30.4% demonstrates continued momentum. PEG of 0.16 suggests the stock is reasonably priced for its growth.

Bull Case : STRL

The strongest argument for STRL centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 91.6% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : GVA

The primary concerns for GVA are P/E Ratio, Altman Z-Score, Profit Margin. Thin 4.0% margins leave little buffer for downturns.

Bear Case : STRL

The primary concerns for STRL are P/E Ratio, Price/Book. A P/E of 76.9x leaves little room for execution misses.

Key Dynamics to Monitor

GVA profiles as a hypergrowth stock while STRL is a growth play — different risk/reward profiles.

STRL carries more volatility with a beta of 1.82 — expect wider price swings.

STRL is growing revenue faster at 91.6% — sustainability is the question.

STRL generates stronger free cash flow (146M), providing more financial flexibility.

Bottom Line

STRL scores higher overall (69/100 vs 64/100) and 91.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Granite Construction Incorporated

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Granite Construction Incorporated is an infrastructure contractor and producer of building materials in the United States. The company is headquartered in Watsonville, California.

Sterling Construction Company Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.

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