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

Granite Construction Incorporated and Legence Corp. are both Engineering & Construction companies. Legence Corp. is the larger, with a market value of $5.7B against $4.9B — 1.2× the size. 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, Granite Construction Incorporated leads on 9 and Legence Corp. on 8.

Valuation

Metric GVA LGN Engineering & Construction median
P/E n/m n/m 28.59
P/S 1.01 1.07 1.15
P/B 6.25 4.08 3.96
Price to free cash flow 9.92 12.34 25.24
EV/EBITDA 11.22 21.44 14.87
EV/Sales 1.14 1.26 1.42
Earnings yield (3.28%) (1.28%) 2.47%
Free cash flow yield 10.08% 8.10% 1.91%

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% — —
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 1.10% — 0.65%
Payout ratio 0.54 — 0.00

Size

Metric GVA LGN Engineering & Construction median
Market cap 4.85b 5.67b 1.31b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack