KBR, Inc. (KBR) vs Legence Corp. (LGN)

KBR, Inc. and Legence Corp. are both Engineering & Construction companies. KBR, Inc. is the larger, with a market value of $4.8B against $2.8B — 1.7× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; KBR, Inc. trades at 10.8×. KBR, Inc. has the higher net margin (5.65% vs −1.20%) and the higher return on invested capital (11.8% vs 1.07%). Across the 17 metrics below, Legence Corp. leads on 9 and KBR, Inc. on 8.

Valuation

Metric KBR LGN Engineering & Construction median
P/E 10.83 n/m 27.65
P/S 0.61 0.52 0.85
P/B 2.69 1.99 3.04
Price to free cash flow 14.74 6.01 19.05
EV/EBITDA 7.69 12.17 11.89
EV/Sales 0.88 0.72 1.20
Earnings yield 9.23% (2.63%) 2.77%
Free cash flow yield 6.78% 16.63% 2.00%

Profitability

Metric KBR LGN Engineering & Construction median
Gross margin 14.69% 18.74% 18.76%
Operating margin 9.32% 0.79% 6.43%
Net margin 5.65% (1.20%) 2.14%
Free cash flow margin 4.23% 8.64% 1.12%
Return on equity 27.26% (7.63%) 6.05%
Return on assets 6.47% (2.41%) 1.19%
Return on invested capital 11.76% 1.07% 2.52%

Growth

Metric KBR LGN Engineering & Construction median
Revenue growth (TTM) (2.36%) — 18.09%
EPS growth (last fiscal year) 15.05% — 13.42%
Revenue growth, 5-year CAGR 6.19% — 12.23%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric KBR LGN Engineering & Construction median
Debt to equity 1.43 1.06 0.41
Current ratio 0.94 1.35 1.37
Net debt to EBITDA 2.21 2.93 0.38

Dividend

Metric KBR LGN Engineering & Construction median
Dividend yield 1.74% — 0.68%
Payout ratio 0.19 — 0.18

Size

Metric KBR LGN Engineering & Construction median
Market cap 4.80b 2.75b 1.13b

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