ACA vs MLM

For growth investors, Arcosa, Inc.

(ACA) is the stronger pick with 12. 2% revenue growth year-over-year, versus 0. 1% for Martin Marietta Materials, Inc. (MLM). Arcosa, Inc. (ACA) offers the better valuation at 29. 3x trailing P/E (29. 1x forward), making it the more compelling value choice. Analysts rate Arcosa, Inc. (ACA) a "Buy" — based on 8 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arcosa, Inc.

(ACA) is the cheapest at 29. 3x versus Martin Marietta Materials, Inc. at 29. 7x. On forward P/E, Martin Marietta Materials, Inc. is actually cheaper at 29. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Arcosa, Inc. wins at 2. 05x versus Martin Marietta Materials, Inc. 's 2. 84x.

Over the past 5 years, Arcosa, Inc.

(ACA) delivered a total return of +100. 9%, compared to +52. 4% for Martin Marietta Materials, Inc. (MLM). Over 10 years, the gap is even starker: ACA returned +509. 7% versus MLM's +212. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Martin Marietta Materials, Inc.

(MLM) is the lower-risk stock at 0. 90β versus Arcosa, Inc. 's 1. 42β — meaning ACA is approximately 59% more volatile than MLM relative to the S&P 500. On balance sheet safety, Martin Marietta Materials, Inc. (MLM) carries a lower debt/equity ratio of 53% versus 58% for Arcosa, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Arcosa, Inc.

(ACA) is pulling ahead at 12. 2% versus 0. 1% for Martin Marietta Materials, Inc. (MLM). On earnings-per-share growth, the picture is similar: Arcosa, Inc. grew EPS 122. 0% year-over-year, compared to -42. 0% for Martin Marietta Materials, Inc.. Over a 3-year CAGR, ACA leads at 8. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Martin Marietta Materials, Inc.

(MLM) is the more profitable company, earning 17. 4% net margin versus 7. 2% for Arcosa, Inc. — meaning it keeps 17. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MLM leads at 23. 3% versus 11. 8% for ACA. At the gross margin level — before operating expenses — MLM leads at 30. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Arcosa, Inc. (ACA) is the more undervalued stock at a PEG of 2. 05x versus Martin Marietta Materials, Inc. 's 2. 84x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Martin Marietta Materials, Inc. (MLM) trades at 29. 1x forward P/E versus 29. 1x for Arcosa, Inc. — 0. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MLM: 24. 8% to $697. 40.

All stocks in this comparison pay dividends.

Martin Marietta Materials, Inc. (MLM) offers the highest yield at 0. 6%, versus 0. 2% for Arcosa, Inc. (ACA).

For long-horizon retirement investors, Martin Marietta Materials, Inc.

(MLM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 90), 0. 6% yield, +212. 3% 10Y return). Both have compounded well over 10 years (MLM: +212. 3%, ACA: +509. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (ACA (Industrials) and MLM (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

MLM pays a dividend while ACA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.