Critical Review: LGN (LGN) and Its Peers

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
LGN	$2.55 billion	-$59.78 million	279.74
LGN Competitors	$9.47 billion	$451.89 million	-5,962.01

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.

Insider and Institutional Ownership

48.3% of shares of all “Construction & Engineering” companies are owned by institutional investors. 0.0% of LGN shares are owned by company insiders. Comparatively, 20.8% 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 company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for LGN and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	2	8	1	2.75
LGN Competitors	801	3344	7126	339	2.60

LGN currently has a consensus target price of $96.80, indicating a potential upside of 50.45%. As a group, “Construction & Engineering” companies have a potential upside of 24.94%. Given LGN’s stronger consensus rating and higher probable upside, 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	N/A	N/A	N/A
LGN Competitors	-7.57%	11.28%	4.19%

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.