Construction Partners Inc (ROAD)vsSterling Construction Company Inc (STRL)
ROAD
Construction Partners Inc
$110.57
-2.09%
INDUSTRIALS · Cap: $6.44B
STRL
Sterling Construction Company Inc
$882.43
-11.20%
INDUSTRIALS · Cap: $26.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Construction Partners Inc generates 13% more annual revenue ($3.26B vs $2.88B). STRL leads profitability with a 12.0% profit margin vs 3.9%. STRL appears more attractively valued with a PEG of 1.47. STRL earns a higher WallStSmart Score of 69/100 (B-).
ROAD
Buy59
out of 100
Grade: C
STRL
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.2%
Fair Value
$77.50
Current Price
$110.57
$33.07 premium
Intrinsic value data unavailable for STRL.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 34.6% year-over-year
Earnings expanding 109.7% YoY
Revenue surging 91.6% year-over-year
Earnings expanding 141.4% YoY
Every $100 of equity generates 29 in profit
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
3.9% margin — thin
Operating margin of 4.8%
Premium valuation, high expectations priced in
Trading at 24.4x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ROAD
The strongest argument for ROAD centers on Revenue Growth, EPS Growth. Revenue growth of 34.6% demonstrates continued momentum.
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 : ROAD
The primary concerns for ROAD are PEG Ratio, Altman Z-Score, Profit Margin. A P/E of 49.7x leaves little room for execution misses. Debt-to-equity of 1.88 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
ROAD 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 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.
Construction Partners Inc
INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA
Construction Partners, Inc., a civil infrastructure company, is engaged in the construction and maintenance of highways in Alabama, Florida, Georgia, North Carolina, and South Carolina. The company is headquartered in Dothan, Alabama.
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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