Comparing LeGrand (LGRDY) & The Competition

LeGrand (OTCMKTS:LGRDY) is one of 218 publicly-traded companies in the “Electrical Equipment” industry, but how does it contrast to its competitors? We will compare LeGrand to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Insider & Institutional Ownership

37.3% of shares of all “Electrical Equipment” companies are owned by institutional investors. 15.3% of shares of all “Electrical Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares LeGrand and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LeGrand	$10.72 billion	$1.41 billion	28.26
LeGrand Competitors	$2.31 billion	$137.32 million	21.36

LeGrand has higher revenue and earnings than its competitors. LeGrand is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares LeGrand and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LeGrand	13.01%	17.74%	7.34%
LeGrand Competitors	-218.47%	-87.34%	-8.78%

Volatility & Risk

LeGrand has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, LeGrand’s competitors have a beta of -19.47, suggesting that their average share price is 2,047% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for LeGrand and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LeGrand	0	5	5	1	2.64
LeGrand Competitors	2158	4997	6941	417	2.39

As a group, “Electrical Equipment” companies have a potential upside of 24.07%. Given LeGrand’s competitors higher possible upside, analysts clearly believe LeGrand has less favorable growth aspects than its competitors.

Dividends

LeGrand pays an annual dividend of $0.34 per share and has a dividend yield of 1.0%. LeGrand pays out 29.3% of its earnings in the form of a dividend. As a group, “Electrical Equipment” companies pay a dividend yield of 1.4% and pay out 27.7% of their earnings in the form of a dividend. LeGrand lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

LeGrand beats its competitors on 9 of the 15 factors compared.

LeGrand Company Profile

Legrand SA, together with its subsidiaries, manufactures, distributes, and sells electrical and digital building infrastructures in Europe, North and Central America, and internationally. The company offers energy distribution, protection, and management solutions, such as electric vehicle charging, residential and small commercial panels, switchboards and power cabinets, and UPS devices; and wiring devices, connected home and building control solutions, and guestroom solutions, as well as back, junction, DCL, and floor boxes. It also provides security, communication, and network solutions, including access security, digital home networks, emergency lighting, fire alarms, IT networks, intercom and door entry, and nurse call systems; conduits and cable management solutions comprising trunking, ducts, tubes, floor boxes, columns and feeders, and workstation solutions; industrial products, such as enclosures, connections, transformers and power supply, marking accessories and cable ties, motor control and protection, fuse protection, and industrial plugs and sockets, as well as control, button, and signaling products; installation accessories, including wiring accessories, extension cords, multi-outlet units, cable ties and fasteners, and connection boxes and terminals; and lighting products and accessories. The company's products are used in hotels, offices, data centers, shopping centers, health care, industrial, and residential buildings. It also exports its products to approximately 170 countries. Legrand SA was founded in 1865 and is headquartered in Limoges, France.