Legence Corp. (LGN) vs Tutor Perini Corporation (TPC)

Legence Corp. and Tutor Perini Corporation 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; Tutor Perini Corporation trades at 35.6×. Tutor Perini Corporation has the higher net margin (2.08% vs −1.20%) and the higher return on invested capital (32.4% vs 1.07%). Across the 17 metrics below, Tutor Perini Corporation leads on 15 and Legence Corp. on 2.

Valuation

Metric LGN TPC Engineering & Construction median
P/E n/m 35.58 28.59
P/S 1.07 0.74 1.15
P/B 4.08 3.31 3.96
Price to free cash flow 12.34 7.01 25.24
EV/EBITDA 21.44 11.49 14.87
EV/Sales 1.26 0.60 1.42
Earnings yield (1.28%) 2.81% 2.47%
Free cash flow yield 8.10% 14.27% 1.91%

Profitability

Metric LGN TPC Engineering & Construction median
Gross margin 18.74% 11.48% 18.76%
Operating margin 0.79% 4.49% 6.26%
Net margin (1.20%) 2.08% 2.23%
Free cash flow margin 8.64% 10.59% 1.83%
Return on equity (7.63%) 9.62% 7.90%
Return on assets (2.41%) 2.42% 0.87%
Return on invested capital 1.07% 32.39% 2.52%

Growth

Metric LGN TPC Engineering & Construction median
Revenue growth (TTM) — 24.70% 16.67%
EPS growth (last fiscal year) — 148.24% —
Revenue growth, 5-year CAGR — 0.83% 11.76%
Net income growth, 5-year CAGR — (5.79%) 0.00%

Health

Metric LGN TPC Engineering & Construction median
Debt to equity 1.06 0.30 0.40
Current ratio 1.35 1.29 1.39
Net debt to EBITDA 2.93 (2.10) 0.38

Dividend

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

Size

Metric LGN TPC Engineering & Construction median
Market cap 5.67b 4.38b 1.31b

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