Legence Corp. (LGN) vs MYR Group, Inc. (MYRG)

Legence Corp. and MYR Group, Inc. are both Engineering & Construction companies. Legence Corp. is the larger, with a market value of $5.7B against $4.6B — 1.2× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; MYR Group, Inc. trades at 27.5×. MYR Group, Inc. has the higher net margin (4.13% vs −1.20%) and the higher return on invested capital (22.5% vs 1.07%). Across the 17 metrics below, MYR Group, Inc. leads on 11 and Legence Corp. on 6.

Valuation

Metric LGN MYRG Engineering & Construction median
P/E n/m 27.47 28.59
P/S 1.07 1.14 1.15
P/B 4.08 6.03 3.96
Price to free cash flow 12.34 22.72 25.24
EV/EBITDA 21.44 14.97 14.87
EV/Sales 1.26 1.10 1.42
Earnings yield (1.28%) 3.64% 2.47%
Free cash flow yield 8.10% 4.40% 1.91%

Profitability

Metric LGN MYRG Engineering & Construction median
Gross margin 18.74% 12.49% 18.76%
Operating margin 0.79% 5.63% 6.26%
Net margin (1.20%) 4.13% 2.23%
Free cash flow margin 8.64% 5.00% 1.83%
Return on equity (7.63%) 24.71% 7.90%
Return on assets (2.41%) 10.14% 0.87%
Return on invested capital 1.07% 22.49% 2.52%

Growth

Metric LGN MYRG Engineering & Construction median
Revenue growth (TTM) — 16.06% 16.67%
EPS growth (last fiscal year) — 311.48% —
Revenue growth, 5-year CAGR — 10.23% 11.76%
Net income growth, 5-year CAGR — 15.04% 0.00%

Health

Metric LGN MYRG Engineering & Construction median
Debt to equity 1.06 0.01 0.40
Current ratio 1.35 1.40 1.39
Net debt to EBITDA 2.93 (0.39) 0.38

Dividend

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

Size

Metric LGN MYRG Engineering & Construction median
Market cap 5.67b 4.60b 1.31b

Compare with another peer

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