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 $4.9B against $4.1B — 1.2× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; Tutor Perini Corporation trades at 32.9×. 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 32.90 29.24
P/S 0.88 0.69 1.09
P/B 3.39 3.06 3.39
Price to free cash flow 10.23 6.48 24.81
EV/EBITDA 18.34 10.43 14.38
EV/Sales 1.08 0.55 1.37
Earnings yield (1.55%) 3.04% 2.83%
Free cash flow yield 9.78% 15.43% 2.28%

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% 13.42%
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 — 0.35% 0.63%
Payout ratio — 0.12 0.17

Size

Metric LGN TPC Engineering & Construction median
Market cap 4.90b 4.13b 1.09b

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