Argan, Inc. (AGX) vs Legence Corp. (LGN)

Argan, Inc. and Legence Corp. are both Engineering & Construction companies. Argan, Inc. and Legence Corp. are of similar size ($5.2B and $4.9B). Legence Corp. has negative trailing earnings, so its P/E is not meaningful; Argan, Inc. trades at 26.9×. Argan, Inc. has the higher net margin (15.1% vs −1.20%) and the lower return on invested capital (0.00% vs 1.07%). Across the 17 metrics below, Argan, Inc. leads on 12 and Legence Corp. on 5.

Valuation

Metric AGX LGN Engineering & Construction median
P/E 26.87 n/m 29.24
P/S 4.08 0.88 1.09
P/B 9.56 3.39 3.39
Price to free cash flow 8.88 10.23 24.81
EV/EBITDA 20.68 18.34 14.38
EV/Sales 3.21 1.08 1.37
Earnings yield 3.72% (1.55%) 2.83%
Free cash flow yield 11.26% 9.78% 2.28%

Profitability

Metric AGX LGN Engineering & Construction median
Gross margin 20.86% 18.74% 18.76%
Operating margin 15.36% 0.79% 6.26%
Net margin 15.09% (1.20%) 2.23%
Free cash flow margin 45.93% 8.64% 1.83%
Return on equity 39.85% (7.63%) 7.90%
Return on assets 15.70% (2.41%) 0.87%
Return on invested capital 0.00% 1.07% 2.52%

Growth

Metric AGX LGN Engineering & Construction median
Revenue growth (TTM) 29.02% — 16.67%
EPS growth (last fiscal year) 58.37% — 13.42%
Revenue growth, 5-year CAGR 19.22% — 11.76%
Net income growth, 5-year CAGR 42.01% — 0.00%

Health

Metric AGX LGN Engineering & Construction median
Debt to equity 0.00 1.06 0.40
Current ratio 1.50 1.35 1.39
Net debt to EBITDA (6.55) 2.93 0.38

Dividend

Metric AGX LGN Engineering & Construction median
Dividend yield 0.78% — 0.63%
Payout ratio 0.21 — 0.17

Size

Metric AGX LGN Engineering & Construction median
Market cap 5.15b 4.90b 1.09b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack