ACM vs STRL

For growth investors, Sterling Infrastructure, Inc.

(STRL) is the stronger pick with 17. 7% revenue growth year-over-year, versus 0. 2% for Aecom (ACM). Aecom (ACM) offers the better valuation at 19. 4x trailing P/E (13. 8x forward), making it the more compelling value choice. Analysts rate Aecom (ACM) a "Buy" — based on 25 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, Aecom (ACM) is the cheapest at 19.

4x versus Sterling Infrastructure, Inc. at 86. 5x. On forward P/E, Aecom is actually cheaper at 13. 8x.

Over the past 5 years, Sterling Infrastructure, Inc.

(STRL) delivered a total return of +34. 0%, compared to +23. 5% for Aecom (ACM). Over 10 years, the gap is even starker: STRL returned +176. 9% versus ACM's +172. 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), Aecom (ACM) is the lower-risk stock at 0.

92β versus Sterling Infrastructure, Inc. 's 2. 54β — meaning STRL is approximately 176% more volatile than ACM relative to the S&P 500. On balance sheet safety, Sterling Infrastructure, Inc. (STRL) carries a lower debt/equity ratio of 32% versus 125% for Aecom — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sterling Infrastructure, Inc.

(STRL) is pulling ahead at 17. 7% versus 0. 2% for Aecom (ACM). On earnings-per-share growth, the picture is similar: Aecom grew EPS 42. 7% year-over-year, compared to 13. 4% for Sterling Infrastructure, Inc.. Over a 3-year CAGR, STRL leads at 12. 1% 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.

Sterling Infrastructure, Inc.

(STRL) is the more profitable company, earning 11. 7% net margin versus 3. 5% for Aecom — meaning it keeps 11. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STRL leads at 16. 6% versus 6. 4% for ACM. At the gross margin level — before operating expenses — STRL leads at 22. 1%, 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.

On forward earnings alone, Aecom (ACM) trades at 13.

8x forward P/E versus 59. 1x for Sterling Infrastructure, Inc. — 45. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ACM: 54. 2% to $125. 63.

In this comparison, ACM (1.

2% yield) pays a dividend. STRL does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Aecom (ACM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

92), 1. 2% yield, +172. 3% 10Y return). Sterling Infrastructure, Inc. (STRL) carries a higher beta of 2. 54 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ACM: +172. 3%, STRL: +176. 9%), 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.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ACM is a mid-cap quality compounder stock; STRL is a mid-cap high-growth stock. ACM pays a dividend while STRL 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.