LGN (NASDAQ:LGN) & IES (NASDAQ:IESC) Head-To-Head Review

IES (NASDAQ:IESC – Get Free Report) and LGN (NASDAQ:LGN – Get Free Report) are both mid-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Valuation and Earnings

This table compares IES and LGN”s revenue, earnings per share (EPS) and valuation.

IES has higher revenue and earnings than LGN. IES 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 current recommendations for IES and LGN, as provided by MarketBeat.com.

IES currently has a consensus target price of $334.50, indicating a potential upside of 70.60%. LGN has a consensus target price of $96.67, indicating a potential upside of 165.49%. Given LGN’s stronger consensus rating and higher possible upside, analysts clearly believe LGN is more favorable than IES.

Profitability

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

Institutional & Insider Ownership

86.6% of IES shares are owned by institutional investors. 56.4% of IES shares are owned by insiders. Comparatively, 0.0% of LGN shares are owned 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

IES beats LGN on 9 of the 13 factors compared between the two stocks.

About IES

(Get Free Report)

IES Holdings, Inc. engages in the design and installation of integrated electrical and technology systems, and provides infrastructure products and services in the United States. The Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.

About LGN

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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.