Ameresco, Inc. (AMRC) vs Legence Corp. (LGN)

Ameresco, Inc. and Legence Corp. are both Engineering & Construction companies. Legence Corp. is the larger, with a market value of $2.8B against $1.0B — 2.7× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; Ameresco, Inc. trades at 36.1×. Ameresco, Inc. has the higher net margin (1.40% vs −1.20%) and the higher return on invested capital (2.76% vs 1.07%). Across the 16 metrics below, Ameresco, Inc. leads on 10 and Legence Corp. on 6.

Valuation

Metric AMRC LGN Engineering & Construction median
P/E 36.06 n/m 27.65
P/S 0.50 0.52 0.85
P/B 0.75 1.99 3.04
Price to free cash flow n/m 6.01 19.05
EV/EBITDA 10.66 12.17 11.89
EV/Sales 1.36 0.72 1.20
Earnings yield 2.77% (2.63%) 2.77%
Free cash flow yield (10.34%) 16.63% 2.00%

Profitability

Metric AMRC LGN Engineering & Construction median
Gross margin 16.13% 18.74% 18.76%
Operating margin 6.72% 0.79% 6.43%
Net margin 1.40% (1.20%) 2.14%
Free cash flow margin (5.13%) 8.64% 1.12%
Return on equity 2.34% (7.63%) 6.05%
Return on assets 0.62% (2.41%) 1.19%
Return on invested capital 2.76% 1.07% 2.52%

Growth

Metric AMRC LGN Engineering & Construction median
Revenue growth (TTM) 8.89% — 18.09%
EPS growth (last fiscal year) (22.43%) — 13.42%
Revenue growth, 5-year CAGR 13.36% — 12.23%
Net income growth, 5-year CAGR (3.91%) — 0.00%

Health

Metric AMRC LGN Engineering & Construction median
Debt to equity 1.45 1.06 0.41
Current ratio 1.67 1.35 1.37
Net debt to EBITDA 7.35 2.93 0.38

Dividend

Metric AMRC LGN Engineering & Construction median
Dividend yield — — 0.68%
Payout ratio — — 0.18

Size

Metric AMRC LGN Engineering & Construction median
Market cap 1.02b 2.75b 1.13b

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