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

Exponent, Inc. and Legence Corp. are both Engineering & Construction companies. Exponent, Inc. is the larger, with a market value of $4.1B against $2.8B — 1.5× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; Exponent, Inc. trades at 36.8×. Exponent, Inc. has the higher net margin (17.4% vs −1.20%) and the higher return on invested capital (45.4% vs 1.07%). Across the 17 metrics below, Exponent, Inc. leads on 10 and Legence Corp. on 7.

Valuation

Metric EXPO LGN Engineering & Construction median
P/E 36.83 n/m 27.65
P/S 6.25 0.52 0.85
P/B 13.37 1.99 3.04
Price to free cash flow 37.93 6.01 19.05
EV/EBITDA 29.04 12.17 11.89
EV/Sales 6.07 0.72 1.20
Earnings yield 2.72% (2.63%) 2.77%
Free cash flow yield 2.64% 16.63% 2.00%

Profitability

Metric EXPO LGN Engineering & Construction median
Gross margin 88.48% 18.74% 18.76%
Operating margin 21.31% 0.79% 6.43%
Net margin 17.40% (1.20%) 2.14%
Free cash flow margin 0.00% 8.64% 1.12%
Return on equity 32.27% (7.63%) 6.05%
Return on assets 15.77% (2.41%) 1.19%
Return on invested capital 45.43% 1.07% 2.52%

Growth

Metric EXPO LGN Engineering & Construction median
Revenue growth (TTM) 15.35% — 18.09%
EPS growth (last fiscal year) (1.90%) — 13.42%
Revenue growth, 5-year CAGR 7.79% — 12.23%
Net income growth, 5-year CAGR 5.13% — 0.00%

Health

Metric EXPO LGN Engineering & Construction median
Debt to equity 0.00 1.06 0.41
Current ratio 1.94 1.35 1.37
Net debt to EBITDA (1.71) 2.93 0.38

Dividend

Metric EXPO LGN Engineering & Construction median
Dividend yield 1.44% — 0.68%
Payout ratio 0.53 — 0.18

Size

Metric EXPO LGN Engineering & Construction median
Market cap 4.08b 2.75b 1.13b

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