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

KBR, Inc. and Legence Corp. are both Engineering & Construction companies. Legence Corp. is the larger, with a market value of $5.7B against $4.4B — 1.3× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; KBR, Inc. trades at 10.4×. KBR, Inc. has the higher net margin (5.49% vs −1.20%) and the higher return on invested capital (11.8% vs 1.07%). Across the 17 metrics below, KBR, Inc. leads on 11 and Legence Corp. on 6.

Valuation

Metric KBR LGN Engineering & Construction median
P/E 10.40 n/m 28.59
P/S 0.56 1.07 1.15
P/B 2.65 4.08 3.96
Price to free cash flow 12.40 12.34 25.24
EV/EBITDA 7.32 21.44 14.87
EV/Sales 0.85 1.26 1.42
Earnings yield 9.61% (1.28%) 2.47%
Free cash flow yield 8.07% 8.10% 1.91%

Profitability

Metric KBR LGN Engineering & Construction median
Gross margin 14.48% 18.74% 18.76%
Operating margin 9.50% 0.79% 6.26%
Net margin 5.49% (1.20%) 2.23%
Free cash flow margin 4.64% 8.64% 1.83%
Return on equity 27.08% (7.63%) 7.90%
Return on assets 6.30% (2.41%) 0.87%
Return on invested capital 11.82% 1.07% 2.52%

Growth

Metric KBR LGN Engineering & Construction median
Revenue growth (TTM) (3.64%) — 16.67%
EPS growth (last fiscal year) 15.05% — —
Revenue growth, 5-year CAGR 6.19% — 11.76%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric KBR LGN Engineering & Construction median
Debt to equity 1.55 1.06 0.40
Current ratio 1.15 1.35 1.39
Net debt to EBITDA 2.21 2.93 0.38

Dividend

Metric KBR LGN Engineering & Construction median
Dividend yield 0.92% — 0.65%
Payout ratio 0.44 — 0.00

Size

Metric KBR LGN Engineering & Construction median
Market cap 4.41b 5.67b 1.31b

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