WillScot (NASDAQ:WSC) and LGN (NASDAQ:LGN) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WillScot	-3.00%	21.62%	3.39%
LGN	-1.20%	4.33%	1.23%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WillScot	$2.28 billion	1.48	-$52.99 million	($0.38)	-49.11
LGN	$2.55 billion	2.40	-$59.78 million	$0.40	141.62

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

Analyst Ratings

This is a summary of current ratings for WillScot and LGN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WillScot	1	7	3	0	2.18
LGN	1	1	10	2	2.93

WillScot currently has a consensus price target of $26.50, indicating a potential upside of 42.02%. LGN has a consensus price target of $99.50, indicating a potential upside of 75.64%. Given LGN’s stronger consensus rating and higher possible upside, analysts plainly believe LGN is more favorable than WillScot.

Insider & Institutional Ownership

95.8% of WillScot shares are held by institutional investors. 3.4% of WillScot shares are held by insiders. Comparatively, 0.0% of LGN shares are held by 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 WillScot on 9 of the 14 factors compared between the two stocks.

About WillScot

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers. The company leases modular space and portable storage units to customers in the construction, commercial and industrial, retail and wholesale trade, energy and natural resources, education, government and institutions, and healthcare markets. The company offers its solutions primarily under the WillScot and Mobile Mini brand names. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. WillScot Mobile Mini Holdings Corp. is headquartered in Phoenix, Arizona.

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.