Head-To-Head Comparison: LGN (LGN) versus Its Peers

LGN (NASDAQ:LGN) is one of 188 public companies in the “Construction & Engineering” industry, but how does it compare to its peers? We will compare LGN to similar businesses based on the strength of its analyst recommendations, earnings, institutional ownership, profitability, risk, valuation and dividends.

Risk and Volatility

LGN has a beta of 3.42, meaning that its share price is 242% more volatile than the S&P 500. Comparatively, LGN’s peers have a beta of 1.60, meaning that their average share price is 60% more volatile than the S&P 500.

Valuation and Earnings

This table compares LGN and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LGN	$3.75 billion	-$59.78 million	78.50
LGN Competitors	$9.55 billion	$456.60 million	-5,815.03

LGN’s peers have higher revenue and earnings than LGN. LGN is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LGN and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	2	10	1	2.79
LGN Competitors	850	3467	7356	362	2.60

LGN presently has a consensus price target of $96.67, indicating a potential upside of 207.85%. As a group, “Construction & Engineering” companies have a potential upside of 43.67%. Given LGN’s stronger consensus rating and higher probable upside, equities research analysts clearly believe LGN is more favorable than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LGN	-1.20%	4.33%	1.23%
LGN Competitors	-3.91%	2.79%	3.83%

Institutional & Insider Ownership

48.9% of shares of all “Construction & Engineering” companies are owned by institutional investors. 0.0% of LGN shares are owned by insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

LGN beats its peers on 8 of the 13 factors compared.

LGN Company Profile

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.