Granite Construction Incorporated (GVA) vs Legence Corp. (LGN)

Granite Construction Incorporated and Legence Corp. are both Engineering & Construction companies. Granite Construction Incorporated and Legence Corp. are of similar size ($4.9B and $4.8B). Legence Corp. has the higher net margin (−1.20% vs −3.32%) and the lower return on invested capital (1.07% vs 13.6%). Across the 17 metrics below, Legence Corp. leads on 10 and Granite Construction Incorporated on 7.

Valuation

Metric GVA LGN Engineering & Construction median
P/E n/m n/m 29.24
P/S 0.97 0.88 1.09
P/B 5.97 3.39 3.39
Price to free cash flow 9.47 10.23 24.81
EV/EBITDA 10.77 18.34 14.38
EV/Sales 1.10 1.08 1.37
Earnings yield (3.44%) (1.55%) 2.83%
Free cash flow yield 10.56% 9.78% 2.28%

Profitability

Metric GVA LGN Engineering & Construction median
Gross margin 15.64% 18.74% 18.76%
Operating margin 6.33% 0.79% 6.26%
Net margin (3.32%) (1.20%) 2.23%
Free cash flow margin 10.22% 8.64% 1.83%
Return on equity (17.18%) (7.63%) 7.90%
Return on assets (4.18%) (2.41%) 0.87%
Return on invested capital 13.55% 1.07% 2.52%

Growth

Metric GVA LGN Engineering & Construction median
Revenue growth (TTM) 21.80% — 16.67%
EPS growth (last fiscal year) 47.33% — 13.42%
Revenue growth, 5-year CAGR 4.43% — 11.76%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric GVA LGN Engineering & Construction median
Debt to equity 1.94 1.06 0.40
Current ratio 1.01 1.35 1.39
Net debt to EBITDA 1.64 2.93 0.38

Dividend

Metric GVA LGN Engineering & Construction median
Dividend yield 0.47% — 0.63%
Payout ratio — — 0.17

Size

Metric GVA LGN Engineering & Construction median
Market cap 4.76b 4.90b 1.09b

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