Legence Corp. (LGN) vs Willdan Group, Inc. (WLDN)

Legence Corp. and Willdan Group, Inc. are both Engineering & Construction companies. Legence Corp. is the larger, with a market value of $2.8B against $1.1B — 2.5× the size. Legence Corp. has negative trailing earnings, so its P/E is not meaningful; Willdan Group, Inc. trades at 16.0×. Willdan Group, Inc. has the higher net margin (8.80% vs −1.20%) and the higher return on invested capital (8.68% vs 1.07%). Across the 17 metrics below, Willdan Group, Inc. leads on 10 and Legence Corp. on 7.

Valuation

Metric LGN WLDN Engineering & Construction median
P/E n/m 16.04 27.65
P/S 0.52 1.44 0.85
P/B 1.99 3.04 3.04
Price to free cash flow 6.01 17.09 19.05
EV/EBITDA 12.17 14.16 11.89
EV/Sales 0.72 1.47 1.20
Earnings yield (2.63%) 6.24% 2.77%
Free cash flow yield 16.63% 5.85% 2.00%

Profitability

Metric LGN WLDN Engineering & Construction median
Gross margin 18.74% 37.79% 18.76%
Operating margin 0.79% 7.05% 6.43%
Net margin (1.20%) 8.80% 2.14%
Free cash flow margin 8.64% 8.41% 1.12%
Return on equity (7.63%) 21.19% 6.05%
Return on assets (2.41%) 11.67% 1.19%
Return on invested capital 1.07% 8.68% 2.52%

Growth

Metric LGN WLDN Engineering & Construction median
Revenue growth (TTM) — 18.09% 18.09%
EPS growth (last fiscal year) — 120.89% 13.42%
Revenue growth, 5-year CAGR — 11.76% 12.23%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric LGN WLDN Engineering & Construction median
Debt to equity 1.06 0.19 0.41
Current ratio 1.35 1.37 1.37
Net debt to EBITDA 2.93 (0.29) 0.38

Dividend

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

Size

Metric LGN WLDN Engineering & Construction median
Market cap 2.75b 1.08b 1.13b

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