Analyzing LGN (LGN) and Its Peers

LGN (NASDAQ:LGN) is one of 190 public companies in the “Construction & Engineering” industry, but how does it contrast to its rivals? We will compare LGN to similar businesses based on the strength of its dividends, valuation, risk, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	2	8	1	2.75
LGN Competitors	791	3326	7091	334	2.60

LGN currently has a consensus target price of $96.80, suggesting a potential upside of 51.42%. As a group, “Construction & Engineering” companies have a potential upside of 25.94%. Given LGN’s stronger consensus rating and higher probable upside, equities research analysts clearly believe LGN is more favorable than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LGN	N/A	N/A	N/A
LGN Competitors	-6.65%	11.52%	4.20%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
LGN	$2.55 billion	-$59.78 million	277.96
LGN Competitors	$9.33 billion	$451.97 million	-5,960.54

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

Insider & Institutional Ownership

48.9% of shares of all “Construction & Engineering” companies are owned by institutional investors. 0.0% of LGN shares are owned by company insiders. Comparatively, 20.5% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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.