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

Legence Corp. and MYR Group, Inc. are both Engineering & Construction companies. MYR Group, Inc. is the larger, with a market value of $3.8B against $2.8B — 1.4× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; MYR Group, Inc. trades at 21.2×. MYR Group, Inc. has the higher net margin (4.48% vs −1.20%) and the higher return on invested capital (16.4% vs 1.07%). Across the 17 metrics below, MYR Group, Inc. leads on 9 and Legence Corp. on 8.

Valuation

Metric LGN MYRG Engineering & Construction median
P/E n/m 21.16 27.18
P/S 0.57 0.95 0.91
P/B 2.18 5.00 3.28
Price to free cash flow 6.60 28.55 18.97
EV/EBITDA 13.03 12.53 12.32
EV/Sales 0.77 0.99 1.20
Earnings yield (2.40%) 4.73% 2.69%
Free cash flow yield 15.16% 3.50% 1.84%

Profitability

Metric LGN MYRG Engineering & Construction median
Gross margin 18.74% 12.97% 18.76%
Operating margin 0.79% 6.13% 6.43%
Net margin (1.20%) 4.48% 2.14%
Free cash flow margin 8.64% 3.32% 1.12%
Return on equity (7.63%) 26.90% 6.05%
Return on assets (2.41%) 10.30% 0.96%
Return on invested capital 1.07% 16.35% 2.52%

Growth

Metric LGN MYRG Engineering & Construction median
Revenue growth (TTM) — 22.78% 18.78%
EPS growth (last fiscal year) — 311.48% 13.42%
Revenue growth, 5-year CAGR — 10.23% 12.23%
Net income growth, 5-year CAGR — 15.04% 0.00%

Health

Metric LGN MYRG Engineering & Construction median
Debt to equity 1.06 0.27 0.41
Current ratio 1.35 1.33 1.37
Net debt to EBITDA 2.93 (0.39) 0.38

Dividend

Metric LGN MYRG Engineering & Construction median
Dividend yield — — 0.68%
Payout ratio — — 0.18

Size

Metric LGN MYRG Engineering & Construction median
Market cap 2.75b 3.84b 1.02b

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