EMCOR Group (NYSE:EME – Get Free Report) and LGN (NASDAQ:LGN – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Profitability
This table compares EMCOR Group and LGN’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EMCOR Group | 7.74% | 35.49% | 14.12% |
| LGN | -1.20% | 4.33% | 1.23% |
Earnings & Valuation
This table compares EMCOR Group and LGN”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EMCOR Group | $16.99 billion | 1.96 | $1.27 billion | $32.15 | 23.47 |
| LGN | $2.55 billion | 2.27 | -$59.78 million | $0.40 | 134.20 |
EMCOR Group has higher revenue and earnings than LGN. EMCOR Group is trading at a lower price-to-earnings ratio than LGN, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for EMCOR Group and LGN, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EMCOR Group | 0 | 1 | 7 | 1 | 3.00 |
| LGN | 1 | 1 | 10 | 2 | 2.93 |
EMCOR Group currently has a consensus target price of $965.86, indicating a potential upside of 28.02%. LGN has a consensus target price of $99.50, indicating a potential upside of 85.36%. Given LGN’s higher probable upside, analysts plainly believe LGN is more favorable than EMCOR Group.
Insider and Institutional Ownership
92.6% of EMCOR Group shares are held by institutional investors. 0.7% of EMCOR Group shares are held by insiders. Comparatively, 0.0% of LGN shares are held by 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
EMCOR Group beats LGN on 9 of the 14 factors compared between the two stocks.
About EMCOR Group
EMCOR Group, Inc. provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that covers commercial and government site-based operations and maintenance; facility management, maintenance, and services; energy efficiency retrofit services; military base operations support services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; modification and retrofit projects; and other building services, including reception, security, and catering services. In addition, it offers refinery turnaround planning and engineering; welding; overhaul and maintenance; instrumentation and electrical; and renewable energy services. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.
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.
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