Tutor Perini vs. Granite: Which Infrastructure Stock is a Better Buy?

Tutor Perini Corporation TPC and Granite Construction Incorporated GVA are capitalizing on a strong cycle of infrastructure investment, anchored by large-scale civil and transportation contracts.These mid-cap companies specialize in large-scale public infrastructure projects, such as highways, bridges, and rail and transit systems, which are often backed by state and federal funding. Their operations are closely aligned with national infrastructure initiatives, making them the key players in delivering the next wave of federally funded transportation and civil works projects.In the current environment, where infrastructure spending remains robust and public funding flows are supporting long-term project pipelines, both Tutor Perini and Granite are sharpening their focus on expanding backlog, winning contracts and improving execution efficiency. With strong demand expected from both public and private markets, the race to scale operations and deepen project visibility is central to their near-term strategy.However, lingering macro and company-specific headwinds continue to challenge both players. Tutor Perini is still navigating the impacts of delayed project awards and cash collections. Broader risks such as inflation, labor availability and permitting delays are other factors that can weigh on margins or project timelines.Let us dive deep and closely compare the fundamentals of the two stocks to determine which is a better investment option now.The Case for TPCTutor Perini is leveraging the ongoing surge in infrastructure spending to strengthen its backlog and broaden its exposure to large-scale civil and commercial projects. The company continues to benefit from a favorable project environment, supported by state, local and federal agencies prioritizing major infrastructure upgrades. Its diversified portfolio spans transportation, healthcare, hospitality, education, and government sectors, aligning well with both public priorities and private investment trends.In the first quarter of 2025, Tutor Perini booked approximately $2 billion in new awards and contract adjustments, which drove its backlog to a record $19.4 billion, nearly doubling from the prior year. The momentum has carried into the second quarter, with more than $500 million in awards already secured. Key wins include civil and building work in the Northeast, Indo-Pacific region, and California, with several large projects moving into the construction phase.Owing to solid year-to-date performance and broad-based market momentum, the company raised its 2025 earnings guidance and reaffirmed expectations for continued backlog strength. Looking ahead, as infrastructure funding remains robust and commercial demand holds firm, Tutor Perini’s broad capabilities and growing pipeline put it in a strong position to capitalize on additional project wins and long-cycle growth opportunities.The Case for GVAGranite continues to build momentum across both public and private markets, supported by resilient funding trends and consistent bidding activities. The company has steadily grown its portfolio while maintaining a disciplined focus on core markets and risk-managed project selection — an approach that has helped it navigate competitive pressures and macro uncertainties.In the first quarter of 2025, Granite’s Committed and Awarded Projects (CAP) climbed to a record $5.7 billion, up 7.5% sequentially and 3.6% year over year. The increase reflects strong market alignment and a focus on “best-value” project delivery, including recent wins like the $26-million taxiway upgrade at San Francisco International Airport. The company expects to continue building on this progress throughout 2025, as the CAP portfolio benefits from ongoing IIJA disbursements and stable state-level funding.Backed by strong execution and portfolio expansion, Granite reaffirmed its 2025 outlook, including revenues of $4.2-$4.4 billion and adjusted EBITDA margins of 11-12%. With steady performance from both its Construction and Materials segments, and active M&A plans to strengthen regional presence, the company remains well-positioned to meet its long-term growth and profitability targets.Price Performance & Valuations for TPC & GVA StocksTutor Perini’s stock has surged 82.3% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry’s 30.1% rise. Meanwhile, Granite shares have risen 21% in the same time. Image Source: Zacks Investment Research Considering valuation, Tutor Perini is trading at a premium to Granite based on the forward 12-month price-to-earnings (P/E) ratio. Image Source: Zacks Investment Research Comparing EPS Projections: TPC & GVAThe 2025 EPS estimates have been unchanged over the past 30 days for both TPC and GVA. However, the Zacks Consensus Estimate still points to a 155.9% year-over-year upsurge for TPC’s bottom line, while GVA is expected to post a more modest increase of 23.2%.For TPC Stock Image Source: Zacks Investment Research For GVA Stock Image Source: Zacks Investment Research Final VerdictWith infrastructure spending holding strong and multi-year project pipelines gaining momentum, both Tutor Perini and Granite appear well-positioned to benefit from rising demand across transportation and civil sectors. Their growing backlogs, disciplined project strategies and exposure to federally supported infrastructure initiatives make them relevant options for investors seeking long-term growth in the construction space.That said, Tutor Perini currently stands out, backed by a record backlog, stronger earnings growth outlook, and rising momentum in both civil and commercial markets. The company’s raised 2025 guidance and 155.9% projected EPS growth highlight improving operational leverage and visibility into high-margin project execution.While Granite — a Zacks Rank #2 (Buy) stock — continues to build steadily, its more measured pace of growth and valuation make it less compelling in the near term. Tutor Perini — a Zacks Rank #1 (Strong Buy) stock — stands out with stronger operational momentum, higher earnings growth expectations and greater upside potential as project execution accelerates.You can see the complete list of today’s Zacks #1 Rank stocks here.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tutor Perini Corporation (TPC): Free Stock Analysis Report Granite Construction Incorporated (GVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks