Critical Comparison: LGN (LGN) vs. Its Rivals

LGN (NASDAQ:LGN) is one of 191 public companies in the “Construction & Engineering” industry, but how does it contrast to its rivals? We will compare LGN to related companies based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, profitability, valuation and risk.

Profitability

This table compares LGN and its rivals’ 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	-7.76%	10.84%	4.14%

Institutional & Insider Ownership

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

Analyst Recommendations

This is a summary of current recommendations and price targets for LGN and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	2	10	1	2.79
LGN Competitors	814	3369	7180	344	2.60

LGN currently has a consensus target price of $99.08, suggesting a potential upside of 41.47%. As a group, “Construction & Engineering” companies have a potential upside of 23.17%. Given LGN’s stronger consensus rating and higher probable upside, equities analysts plainly believe LGN is more favorable than its rivals.

Earnings and Valuation

This table compares LGN and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LGN	$2.55 billion	-$59.78 million	304.52
LGN Competitors	$9.38 billion	$447.80 million	-5,906.00

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

LGN Company Profile

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.