ACA’s One-Week Rally Offers a Chance to Reevaluate EME
EMCOR (EME) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Arcosa (ACA), suggesting you may be better off investing in EME
- EME’s quarterly revenue growth was 12.7%, vs. ACA’s 5.6%.
- In addition, its Last 12 Months revenue growth came in at 14.3%, ahead of ACA’s 10.4%.
- EME’s LTM margin is higher: 9.4% vs. ACA’s 7.9%.
ACA provides infrastructure products and solutions for construction, energy, and transportation markets, including construction materials, engineered structures, and transportation products like inland barges and related components. EME provides electrical and mechanical construction, facilities management, and maintenance services for commercial and government sites in the US and UK.
Valuation & Performance Overview
| ACA | EME | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 23.9 | 20.0 | EME |
| Revenue Growth | |||
| Last Quarter | 5.6% | 12.7% | EME |
| Last 12 Months | 10.4% | 14.3% | EME |
| Last 3 Year Average | 6.9% | 13.8% | EME |
| Operating Margins | |||
| Last 12 Months | 7.9% | 9.4% | EME |
| Last 3 Year Average | 7.5% | 7.4% | ACA |
| Momentum | |||
| Last 3 Year Return | 55.8% | 413.5% | ACA |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ACA Revenue Comparison | EME Revenue Comparison
See more margin details: ACA Operating Income Comparison | EME Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell EME Stock to see if EMCOR’s edge holds up under the hood or if Arcosa still has cards to play (see Buy or Sell ACA Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ACA Return | 24% | -4% | 4% | 53% | 17% | 3% | 119% | ||
| EME Return | 6% | 40% | 17% | 46% | 111% | 40% | 632% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 98% | ||
| Monthly Win Rates [3] | |||||||||
| ACA Win Rate | 58% | 50% | 42% | 75% | 50% | 57% | 55% | ||
| EME Win Rate | 67% | 50% | 33% | 67% | 83% | 57% | 60% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| ACA Max Drawdown | -32% | -11% | -17% | -4% | -8% | -27% | -17% | ||
| EME Max Drawdown | -44% | -3% | -24% | -4% | -2% | -25% | -17% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read EME Dip Buyer Analyses and ACA Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.