WallStSmart

EMCOR Group Inc (EME)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

EMCOR Group Inc generates 582% more annual revenue ($16.99B vs $2.49B). STRL leads profitability with a 11.7% profit margin vs 7.5%. EME appears more attractively valued with a PEG of 1.08. EME earns a higher WallStSmart Score of 64/100 (C+).

EME

Buy

64

out of 100

Grade: C+

Growth: 8.7Profit: 7.0Value: 10.0Quality: 6.3
Piotroski: 5/9Altman Z: 4.41

STRL

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 4.7Quality: 5.8
Piotroski: 6/9Altman Z: 2.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EMEUndervalued (+38.8%)

Margin of Safety

+38.8%

Fair Value

$1320.70

Current Price

$764.76

$555.94 discount

UndervaluedFair: $1320.70Overvalued
STRLSignificantly Overvalued (-581.0%)

Margin of Safety

-581.0%

Fair Value

$63.72

Current Price

$452.92

$389.20 premium

UndervaluedFair: $63.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EME4 strengths · Avg: 9.5/10
Return on EquityProfitability
38.5%10/10

Every $100 of equity generates 39 in profit

EPS GrowthGrowth
53.0%10/10

Earnings expanding 53.0% YoY

Altman Z-ScoreHealth
4.4110/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
19.7%8/10

19.7% revenue growth

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

EME3 concerns · Avg: 3.7/10
P/E RatioValuation
27.1x4/10

Moderate valuation

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

Profit MarginProfitability
7.5%3/10

7.5% margin — thin

STRL4 concerns · Avg: 2.5/10
Price/BookValuation
12.5x4/10

Trading at 12.5x book value

PEG RatioValuation
2.562/10

Expensive relative to growth rate

P/E RatioValuation
47.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-22.6%2/10

Earnings declined 22.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : EME

The strongest argument for EME centers on Return on Equity, EPS Growth, Altman Z-Score. Revenue growth of 19.7% demonstrates continued momentum. PEG of 1.08 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 : EME

The primary concerns for EME are P/E Ratio, Price/Book, Profit Margin.

Bear Case : STRL

The primary concerns for STRL are Price/Book, PEG Ratio, P/E Ratio. A P/E of 47.6x leaves little room for execution misses.

Key Dynamics to Monitor

STRL carries more volatility with a beta of 1.50 — expect wider price swings.

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

EME generates stronger free cash flow (492M), providing more financial flexibility.

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

Bottom Line

EME scores higher overall (64/100 vs 58/100) and 19.7% 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.

EMCOR Group Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

EMCOR Group, Inc. provides electrical and mechanical installation and construction services in the United States. The company is headquartered in Norwalk, Connecticut.

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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