AtkinsRéalis (OTCMKTS:SNCAF) and LGN (NASDAQ:LGN) Financial Review

AtkinsRéalis (OTCMKTS:SNCAF) and LGN (NASDAQ:LGN) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares AtkinsRéalis and LGN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AtkinsRéalis	N/A	N/A	N/A
LGN	N/A	N/A	N/A

Valuation and Earnings

This table compares AtkinsRéalis and LGN”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AtkinsRéalis	N/A	N/A	N/A	$1.89	33.25
LGN	$2.55 billion	2.75	-$59.78 million	$0.23	282.48

AtkinsRéalis has higher earnings, but lower revenue than LGN. AtkinsRéalis is trading at a lower price-to-earnings ratio than LGN, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for AtkinsRéalis and LGN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AtkinsRéalis	0	0	0	0	0.00
LGN	1	2	8	1	2.75

LGN has a consensus price target of $96.80, indicating a potential upside of 48.99%. Given LGN’s stronger consensus rating and higher possible upside, analysts clearly believe LGN is more favorable than AtkinsRéalis.

Institutional & Insider Ownership

37.0% of AtkinsRéalis shares are held by institutional investors. 0.0% of LGN shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

LGN beats AtkinsRéalis on 7 of the 9 factors compared between the two stocks.

About AtkinsRéalis

AtkinsRéalis operates as an integrated professional services and project management company worldwide. It operates through six segments: Engineering Services, Nuclear, O&M, Linxon, LSTK Projects, and Capital. The Engineering Services segment provides consultancy, engineering, design, and project management services for the transportation, building and places, defense, water, industrial, minerals and metal, and power and renewables sectors. The Nuclear segment offers services for clients across the nuclear life cycle consultancy, field, technology, spare parts, reactor support, and decommissioning and waste management services, as well as engineering services; and new-build and full refurbishment services for reactors. The O&M segment provides operations, maintenance, and asset management solutions for bridges, transit systems, highways, and buildings and industrial plants, as well as postal services and ships. The Linxon segment provides engineering, procurement, management, and construction services for execution of alternative current power substations, including expansions and electrification through repetitive EPC offerings for various markets, including utilities, renewables, conventional generation, transportation, and data centers. The LSTK Projects segment undertakes construction contracts for the mass transit projects. The Capital segment engages in the developing of projects, arranging financing, investing in equity, undertaking complex financial modeling, and managing its infrastructure investments, such as bridges and highways, mass transit systems, power facilities, energy infrastructure, water treatment plants, and social infrastructure. The company was formerly known as SNC-Lavalin Group Inc. and changed its name to AtkinsRéalis in September 2023. AtkinsRéalis was founded in 1911 and is headquartered in Montreal, Canada.

About LGN

Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.