Critical Analysis: AtkinsRéalis (OTCMKTS:SNCAF) & LGN (NASDAQ:LGN)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for LGN and AtkinsRéalis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	2	8	1	2.75
AtkinsRéalis	0	0	0	0	0.00

LGN presently has a consensus price target of $96.80, suggesting a potential upside of 48.99%. Given LGN’s stronger consensus rating and higher possible upside, analysts clearly believe LGN is more favorable than AtkinsRéalis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LGN	N/A	N/A	N/A
AtkinsRéalis	N/A	N/A	N/A

Earnings and Valuation

This table compares LGN and AtkinsRéalis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGN	$2.55 billion	2.75	-$59.78 million	$0.23	282.48
AtkinsRéalis	N/A	N/A	N/A	$1.89	33.25

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

Insider and Institutional Ownership

37.0% of AtkinsRéalis shares are held by institutional investors. 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 stock is poised for long-term growth.

Summary

LGN beats AtkinsRéalis on 7 of the 9 factors compared between the two stocks.

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.

About AtkinsRéalis

AtkinsRéalis operates as an integrated professional services and project management company worldwide. It operates through six segments: Engineering Services, Nuclear, O&M, Linxon, LSTK Projects, and Capital. The Engineering Services segment provides consultancy, engineering, design, and project management services for the transportation, building and places, defense, water, industrial, minerals and metal, and power and renewables sectors. The Nuclear segment offers services for clients across the nuclear life cycle consultancy, field, technology, spare parts, reactor support, and decommissioning and waste management services, as well as engineering services; and new-build and full refurbishment services for reactors. The O&M segment provides operations, maintenance, and asset management solutions for bridges, transit systems, highways, and buildings and industrial plants, as well as postal services and ships. The Linxon segment provides engineering, procurement, management, and construction services for execution of alternative current power substations, including expansions and electrification through repetitive EPC offerings for various markets, including utilities, renewables, conventional generation, transportation, and data centers. The LSTK Projects segment undertakes construction contracts for the mass transit projects. The Capital segment engages in the developing of projects, arranging financing, investing in equity, undertaking complex financial modeling, and managing its infrastructure investments, such as bridges and highways, mass transit systems, power facilities, energy infrastructure, water treatment plants, and social infrastructure. The company was formerly known as SNC-Lavalin Group Inc. and changed its name to AtkinsRéalis in September 2023. AtkinsRéalis was founded in 1911 and is headquartered in Montreal, Canada.