Legence Corp. (LGN) vs Primoris Services Corporation (PRIM)

Legence Corp. and Primoris Services Corporation are both Engineering & Construction companies. Primoris Services Corporation is the larger, with a market value of $3.2B against $2.8B — 1.2× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; Primoris Services Corporation trades at 33.5×. Primoris Services Corporation has the higher net margin (1.36% vs −1.20%) and the higher return on invested capital (4.97% vs 1.07%). Across the 17 metrics below, Primoris Services Corporation leads on 11 and Legence Corp. on 6.

Valuation

Metric LGN PRIM Engineering & Construction median
P/E n/m 33.52 27.65
P/S 0.52 0.45 0.85
P/B 1.99 2.06 3.04
Price to free cash flow 6.01 50.03 19.05
EV/EBITDA 12.17 12.05 11.89
EV/Sales 0.72 0.54 1.20
Earnings yield (2.63%) 2.98% 2.77%
Free cash flow yield 16.63% 2.00% 2.00%

Profitability

Metric LGN PRIM Engineering & Construction median
Gross margin 18.74% 8.46% 18.76%
Operating margin 0.79% 2.41% 6.43%
Net margin (1.20%) 1.36% 2.14%
Free cash flow margin 8.64% 0.91% 1.12%
Return on equity (7.63%) 6.05% 6.05%
Return on assets (2.41%) 2.08% 1.19%
Return on invested capital 1.07% 4.97% 2.52%

Growth

Metric LGN PRIM Engineering & Construction median
Revenue growth (TTM) — (5.37%) 18.09%
EPS growth (last fiscal year) — 51.66% 13.42%
Revenue growth, 5-year CAGR — 16.75% 12.23%
Net income growth, 5-year CAGR — 21.23% 0.00%

Health

Metric LGN PRIM Engineering & Construction median
Debt to equity 1.06 0.50 0.41
Current ratio 1.35 1.14 1.37
Net debt to EBITDA 2.93 (0.13) 0.38

Dividend

Metric LGN PRIM Engineering & Construction median
Dividend yield — 0.53% 0.68%
Payout ratio — 0.18 0.18

Size

Metric LGN PRIM Engineering & Construction median
Market cap 2.75b 3.21b 1.13b

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