EMCOR Group (NYSE:EME) vs. LGN (NASDAQ:LGN) Critical Survey

LGN (NASDAQ:LGN – Get Free Report) and EMCOR Group (NYSE:EME – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Institutional & Insider Ownership

92.6% of EMCOR Group shares are owned by institutional investors. 0.0% of LGN shares are owned by company insiders. Comparatively, 0.7% of EMCOR Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for LGN and EMCOR Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LGN 1 1 10 2 2.93
EMCOR Group 0 1 7 1 3.00

LGN currently has a consensus target price of $99.50, indicating a potential upside of 85.36%. EMCOR Group has a consensus target price of $965.86, indicating a potential upside of 28.02%. Given LGN’s higher possible upside, equities research analysts clearly believe LGN is more favorable than EMCOR Group.

Profitability

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

Net Margins Return on Equity Return on Assets
LGN -1.20% 4.33% 1.23%
EMCOR Group 7.74% 35.49% 14.12%

Valuation and Earnings

This table compares LGN and EMCOR Group”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LGN $2.55 billion 2.27 -$59.78 million $0.40 134.20
EMCOR Group $16.99 billion 1.96 $1.27 billion $32.15 23.47

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

Summary

EMCOR Group beats LGN on 9 of the 14 factors compared between the two stocks.

About LGN

(Get Free Report)

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.

About EMCOR Group

(Get Free Report)

EMCOR Group, Inc. provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that covers commercial and government site-based operations and maintenance; facility management, maintenance, and services; energy efficiency retrofit services; military base operations support services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; modification and retrofit projects; and other building services, including reception, security, and catering services. In addition, it offers refinery turnaround planning and engineering; welding; overhaul and maintenance; instrumentation and electrical; and renewable energy services. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.

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