WallStSmart

Construction Partners Inc (ROAD)vsSterling Construction Company Inc (STRL)

VS

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

Buy

59

out of 100

Grade: C

Growth: 10.0Profit: 5.0Value: 3.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.64

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

ROADSignificantly Overvalued (-73.2%)

Margin of Safety

-73.2%

Fair Value

$77.50

Current Price

$110.57

$33.07 premium

UndervaluedFair: $77.50Overvalued

Intrinsic value data unavailable for STRL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ROAD2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
34.6%10/10

Revenue surging 34.6% year-over-year

EPS GrowthGrowth
109.7%10/10

Earnings expanding 109.7% 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

ROAD4 concerns · Avg: 3.5/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.644/10

Distress zone — elevated risk

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Operating MarginProfitability
4.8%3/10

Operating margin of 4.8%

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 : 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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