WallStSmart

KBR Inc (KBR)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KBR Inc generates 167% more annual revenue ($7.69B vs $2.88B). STRL leads profitability with a 12.0% profit margin vs 5.2%. KBR appears more attractively valued with a PEG of 0.54. STRL earns a higher WallStSmart Score of 69/100 (B-).

KBR

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 6.7Quality: 6.0
Piotroski: 6/9Altman Z: 2.18

STRL

Strong Buy

69

out of 100

Grade: B-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KBRSignificantly Overvalued (-37.5%)

Margin of Safety

-37.5%

Fair Value

$29.74

Current Price

$35.56

$5.82 premium

UndervaluedFair: $29.74Overvalued

Intrinsic value data unavailable for STRL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KBR4 strengths · Avg: 8.8/10
P/E RatioValuation
10.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.548/10

Growing faster than its price suggests

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

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

KBR4 concerns · Avg: 2.5/10
Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Debt/EquityHealth
1.773/10

Elevated debt levels

Revenue GrowthGrowth
-4.7%2/10

Revenue declined 4.7%

EPS GrowthGrowth
-8.7%2/10

Earnings declined 8.7%

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 : KBR

The strongest argument for KBR centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.54 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 : KBR

The primary concerns for KBR are Profit Margin, Debt/Equity, Revenue Growth. Debt-to-equity of 1.77 is elevated, increasing financial risk.

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

KBR profiles as a value 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 59/100) 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.

KBR Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

KBR, Inc. provides engineering, science, and technology solutions to governments and commercial customers worldwide. The company is headquartered in Houston, Texas.

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.

Want to dig deeper into these stocks?