Financial Comparison: LGN (LGN) versus Its Rivals

LGN (NASDAQ:LGN) is one of 190 publicly-traded companies in the “Construction & Engineering” industry, but how does it compare to its peers? We will compare LGN to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	1	10	2	2.93
LGN Competitors	818	3384	7201	348	2.60

LGN presently has a consensus target price of $99.50, suggesting a potential upside of 84.77%. As a group, “Construction & Engineering” companies have a potential upside of 35.06%. Given LGN’s stronger consensus rating and higher probable upside, equities analysts clearly believe LGN is more favorable than its peers.

Profitability

This table compares LGN and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGN	-1.20%	4.33%	1.23%
LGN Competitors	-4.02%	3.71%	3.76%

Institutional and Insider Ownership

48.3% of shares of all “Construction & Engineering” companies are held by institutional investors. 0.0% of LGN shares are held by insiders. Comparatively, 20.8% of shares of all “Construction & Engineering” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares LGN and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LGN	$2.55 billion	-$59.78 million	134.62
LGN Competitors	$10.58 billion	$451.69 million	-5,854.24

LGN’s peers have higher revenue and earnings than LGN. LGN is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

LGN beats its peers on 7 of the 12 factors compared.

About LGN

Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.