Head to Head Review: Dycom Industries (NYSE:DY) vs. LGN (NASDAQ:LGN)
by Tristan Rich · The Markets DailyLGN (NASDAQ:LGN – Get Free Report) and Dycom Industries (NYSE:DY – Get Free Report) are both mid-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Profitability
This table compares LGN and Dycom Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LGN | -1.20% | 4.33% | 1.23% |
| Dycom Industries | 4.79% | 25.30% | 8.39% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for LGN and Dycom Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LGN | 1 | 1 | 10 | 2 | 2.93 |
| Dycom Industries | 0 | 2 | 10 | 0 | 2.83 |
LGN currently has a consensus price target of $99.50, indicating a potential upside of 85.36%. Dycom Industries has a consensus price target of $502.92, indicating a potential upside of 86.59%. Given Dycom Industries’ higher possible upside, analysts clearly believe Dycom Industries is more favorable than LGN.
Institutional & Insider Ownership
98.3% of Dycom Industries shares are held by institutional investors. 0.0% of LGN shares are held by insiders. Comparatively, 1.2% of Dycom Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares LGN and Dycom Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LGN | $3.75 billion | 1.55 | -$59.78 million | $0.40 | 134.20 |
| Dycom Industries | $6.88 billion | 1.18 | $281.19 million | $10.99 | 24.53 |
Dycom Industries has higher revenue and earnings than LGN. Dycom Industries is trading at a lower price-to-earnings ratio than LGN, indicating that it is currently the more affordable of the two stocks.
Summary
Dycom Industries beats LGN on 9 of the 13 factors compared between the two stocks.
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.
About Dycom Industries
Dycom Industries, Inc. provides specialty contracting services to the telecommunications infrastructure and utility industries in the United States. The company offers engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems; wireless networks in connection with the deployment of macro cell and new small cell sites; and program and project management and inspection personnel. It also provides construction, maintenance, and installation services for telephone companies and cable multiple system operators, such as placement and splicing of copper, fiber, and coaxial cables; tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; underground facility locating services comprising locating telephone, cable television, power, water, sewer, and gas lines; installation and maintenance of customer premise equipment, including digital video recorders, set top boxes, and modems for cable system operators; and construction and maintenance services for electric and gas utilities, and other customers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.