Head to Head Review: Aecon Group (OTCMKTS:AEGXF) versus LGN (NASDAQ:LGN)

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

Earnings and Valuation

This table compares LGN and Aecon 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	2.23	-$59.78 million	$0.40	131.57
Aecon Group	N/A	N/A	N/A	$0.37	86.53

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

Institutional & Insider Ownership

45.8% of Aecon Group shares are held by institutional investors. 0.0% of LGN shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LGN and Aecon Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	1	10	2	2.93
Aecon Group	0	4	3	0	2.43

LGN presently has a consensus price target of $99.50, suggesting a potential upside of 89.06%. Given LGN’s stronger consensus rating and higher probable upside, research analysts plainly believe LGN is more favorable than Aecon Group.

Profitability

This table compares LGN and Aecon 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%
Aecon Group	N/A	N/A	N/A

Summary

LGN beats Aecon Group on 10 of the 12 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 Aecon Group

Aecon Group Inc., together with its subsidiaries, provide construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally. It operates through two segments, Construction and Concessions. The Construction segment focuses on civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure, and conventional industrial infrastructure market sectors. The Concessions segment engages in the development, building, financing, and operation of construction projects by way of public-private partnership contract structures. This segment also provides development of domestic international public-private partnership; private finance solution; developing strategic partnerships; leading and/or participating in development teams; and operations and maintenance of infrastructure assets services. The company was formerly known as Prefac Concrete Co. Ltd. and changed its name to Aecon Group Inc. in June 2001. Aecon Group Inc. was founded in 1867 and is headquartered in Toronto, Canada.