WallStSmart

Jacobs Solutions Inc. (J)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Jacobs Solutions Inc. generates 429% more annual revenue ($13.17B vs $2.49B). STRL leads profitability with a 11.7% profit margin vs 2.9%. J appears more attractively valued with a PEG of 0.49. STRL earns a higher WallStSmart Score of 53/100 (C-).

J

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 5.3Quality: 5.3
Piotroski: 5/9Altman Z: 1.99

STRL

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 8.0Value: 3.0Quality: 5.8
Piotroski: 6/9Altman Z: 2.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JSignificantly Overvalued (-28.5%)

Margin of Safety

-28.5%

Fair Value

$110.78

Current Price

$118.43

$7.65 premium

UndervaluedFair: $110.78Overvalued

Intrinsic value data unavailable for STRL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

J2 strengths · Avg: 9.0/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

STRL2 strengths · Avg: 10.0/10
Return on EquityProfitability
32.1%10/10

Every $100 of equity generates 32 in profit

Revenue GrowthGrowth
51.5%10/10

Revenue surging 51.5% year-over-year

Areas to Watch

J4 concerns · Avg: 3.3/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

EPS GrowthGrowth
-63.4%2/10

Earnings declined 63.4%

STRL4 concerns · Avg: 2.0/10
PEG RatioValuation
4.442/10

Expensive relative to growth rate

P/E RatioValuation
72.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
23.4x2/10

Trading at 23.4x book value

EPS GrowthGrowth
-22.6%2/10

Earnings declined 22.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : J

The strongest argument for J centers on PEG Ratio, Revenue Growth. Revenue growth of 27.0% demonstrates continued momentum. PEG of 0.49 suggests the stock is reasonably priced for its growth.

Bull Case : STRL

The strongest argument for STRL centers on Return on Equity, Revenue Growth. Revenue growth of 51.5% demonstrates continued momentum.

Bear Case : J

The primary concerns for J are P/E Ratio, Altman Z-Score, Profit Margin. Thin 2.9% margins leave little buffer for downturns.

Bear Case : STRL

The primary concerns for STRL are PEG Ratio, P/E Ratio, Price/Book. A P/E of 72.5x leaves little room for execution misses.

Key Dynamics to Monitor

STRL carries more volatility with a beta of 1.64 — expect wider price swings.

STRL is growing revenue faster at 51.5% — sustainability is the question.

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

Monitor ENGINEERING & CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

STRL scores higher overall (53/100 vs 52/100) and 51.5% revenue growth. Both earn "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.

Jacobs Solutions Inc.

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Jacobs Engineering Group Inc. (NYSE: J) is an American international technical professional services firm. The company provides technical, professional and construction services, as well as scientific and specialty consulting for a broad range of clients globally, including companies, organizations, and government agencies.

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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