Analyzing LGN (NASDAQ:LGN) and Southland (NASDAQ:SLND)

Southland (NASDAQ:SLND) and LGN (NASDAQ:LGN) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares Southland and LGN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southland	-10.38%	-47.71%	-8.75%
LGN	-1.20%	4.33%	1.23%

Earnings and Valuation

This table compares Southland and LGN”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southland	$603.01 million	0.06	-$19.25 million	($7.46)	-0.08
LGN	$2.55 billion	1.57	-$59.78 million	$0.40	92.73

Southland has higher earnings, but lower revenue than LGN. Southland is trading at a lower price-to-earnings ratio than LGN, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Southland and LGN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southland	0	1	0	0	2.00
LGN	1	2	10	1	2.79

LGN has a consensus target price of $96.67, indicating a potential upside of 160.63%. Given LGN’s stronger consensus rating and higher possible upside, analysts plainly believe LGN is more favorable than Southland.

Volatility & Risk

Southland has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, LGN has a beta of 3.42, indicating that its share price is 242% more volatile than the S&P 500.

Institutional and Insider Ownership

2.8% of Southland shares are held by institutional investors. 73.4% of Southland shares are held by company insiders. Comparatively, 0.0% of LGN shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

LGN beats Southland on 12 of the 15 factors compared between the two stocks.

About Southland

Southland Holdings, Inc. (NASDAQ: SLND) is an infrastructure construction company that delivers complex heavy civil, transportation and marine construction services. The company works on projects involving bridges, tunnels, highways, rail systems, airports, water and wastewater infrastructure, dams, ports and other large-scale public and private facilities. Its capabilities include general contracting, design-build construction, deep foundations, tunneling, dredging, marine structures, structural rehabilitation and specialty engineering.

About LGN

Legence Corp. provides engineering, installation and maintenance services for building systems. Its work includes heating, ventilation and air conditioning, plumbing, electrical systems, process piping, building automation and energy solutions. The company serves customers with complex building needs, including in the data center, healthcare, life sciences, commercial and industrial sectors. Its services span the building lifecycle, from design and construction to ongoing operations and maintenance.