Financial Comparison: Matrix Service (NASDAQ:MTRX) and LGN (NASDAQ:LGN)

Matrix Service (NASDAQ:MTRX) and LGN (NASDAQ:LGN) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares Matrix Service and LGN”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matrix Service	$873.63 million	0.30	-$2.58 million	($0.09)	-103.44
LGN	$3.75 billion	1.05	-$59.78 million	$0.40	91.02

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Matrix Service	-0.30%	5.32%	1.20%
LGN	-1.20%	4.33%	1.23%

Institutional & Insider Ownership

78.4% of Matrix Service shares are owned by institutional investors. 1.9% of Matrix Service shares are owned by company insiders. Comparatively, 0.0% of LGN shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Matrix Service and LGN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matrix Service	1	0	1	1	2.67
LGN	1	2	10	1	2.79

Matrix Service currently has a consensus target price of $16.50, indicating a potential upside of 77.23%. LGN has a consensus target price of $96.67, indicating a potential upside of 165.49%. Given LGN’s stronger consensus rating and higher possible upside, analysts plainly believe LGN is more favorable than Matrix Service.

Summary

LGN beats Matrix Service on 8 of the 13 factors compared between the two stocks.

About Matrix Service

Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

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.