Fluor Corporation (FLR) vs Legence Corp. (LGN)

Fluor Corporation and Legence Corp. are both Engineering & Construction companies. Fluor Corporation is the larger, with a market value of $6.9B against $5.7B — 1.2× the size. Legence Corp. has the higher net margin (−1.20% vs −12.9%) and the higher return on invested capital (1.07% vs −16.6%). Across the 15 metrics below, Legence Corp. leads on 10 and Fluor Corporation on 5.

Valuation

Metric FLR LGN Engineering & Construction median
P/E n/m n/m 28.59
P/S 0.45 1.07 1.15
P/B 2.51 4.08 3.96
Price to free cash flow n/m 12.34 25.24
EV/EBITDA n/m 21.44 14.87
EV/Sales 0.32 1.26 1.42
Earnings yield (24.35%) (1.28%) 2.47%
Free cash flow yield (2.93%) 8.10% 1.91%

Profitability

Metric FLR LGN Engineering & Construction median
Gross margin (0.80%) 18.74% 18.76%
Operating margin (1.39%) 0.79% 6.26%
Net margin (12.85%) (1.20%) 2.23%
Free cash flow margin (1.32%) 8.64% 1.83%
Return on equity (45.56%) (7.63%) 7.90%
Return on assets (20.66%) (2.41%) 0.87%
Return on invested capital (16.58%) 1.07% 2.52%

Growth

Metric FLR LGN Engineering & Construction median
Revenue growth (TTM) (4.78%) — 16.67%
EPS growth (last fiscal year) (102.52%) — —
Revenue growth, 5-year CAGR (0.36%) — 11.76%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric FLR LGN Engineering & Construction median
Debt to equity 0.38 1.06 0.40
Current ratio 1.80 1.35 1.39
Net debt to EBITDA 8.72 2.93 0.38

Dividend

Metric FLR LGN Engineering & Construction median
Dividend yield 0.23% — 0.65%
Payout ratio 0.00 — 0.00

Size

Metric FLR LGN Engineering & Construction median
Market cap 6.89b 5.67b 1.31b

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