Exponent, Inc. (EXPO) vs Legence Corp. (LGN)

Exponent, Inc. and Legence Corp. are both Engineering & Construction companies. Legence Corp. is the larger, with a market value of $4.9B against $3.4B — 1.4× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; Exponent, Inc. trades at 32.2×. Exponent, Inc. has the higher net margin (17.7% vs −1.20%) and the higher return on invested capital (35.9% vs 1.07%). Across the 17 metrics below, Exponent, Inc. leads on 11 and Legence Corp. on 6.

Valuation

Metric EXPO LGN Engineering & Construction median
P/E 32.16 n/m 29.24
P/S 5.53 0.88 1.09
P/B 12.11 3.39 3.39
Price to free cash flow 32.21 10.23 24.81
EV/EBITDA 24.88 18.34 14.38
EV/Sales 5.42 1.08 1.37
Earnings yield 3.11% (1.55%) 2.83%
Free cash flow yield 3.10% 9.78% 2.28%

Profitability

Metric EXPO LGN Engineering & Construction median
Gross margin 89.67% 18.74% 18.76%
Operating margin 20.17% 0.79% 6.26%
Net margin 17.67% (1.20%) 2.23%
Free cash flow margin 17.16% 8.64% 1.83%
Return on equity 31.20% (7.63%) 7.90%
Return on assets 15.83% (2.41%) 0.87%
Return on invested capital 35.92% 1.07% 2.52%

Growth

Metric EXPO LGN Engineering & Construction median
Revenue growth (TTM) 12.84% — 16.67%
EPS growth (last fiscal year) (1.90%) — 13.42%
Revenue growth, 5-year CAGR 7.79% — 11.76%
Net income growth, 5-year CAGR 5.13% — 0.00%

Health

Metric EXPO LGN Engineering & Construction median
Debt to equity 0.00 1.06 0.40
Current ratio 1.98 1.35 1.39
Net debt to EBITDA (1.71) 2.93 0.38

Dividend

Metric EXPO LGN Engineering & Construction median
Dividend yield 1.72% — 0.63%
Payout ratio 0.55 — 0.17

Size

Metric EXPO LGN Engineering & Construction median
Market cap 3.44b 4.90b 1.09b

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