Head-To-Head Analysis: Dycom Industries (NYSE:DY) & LGN (NASDAQ:LGN)

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

Insider and Institutional Ownership

98.3% of Dycom Industries shares are owned by institutional investors. 1.2% of Dycom Industries shares are owned by company insiders. Comparatively, 0.0% of LGN shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dycom Industries $5.55 billion 1.45 $281.19 million $10.99 24.27
LGN $2.55 billion 1.92 -$59.78 million $0.40 113.06

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.

Profitability

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

Net Margins Return on Equity Return on Assets
Dycom Industries 4.79% 25.30% 8.39%
LGN -1.20% 4.33% 1.23%

Analyst Ratings

This is a summary of recent recommendations and price targets for Dycom Industries and LGN, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dycom Industries 0 2 10 0 2.83
LGN 1 1 10 2 2.93

Dycom Industries currently has a consensus price target of $502.92, indicating a potential upside of 88.55%. LGN has a consensus price target of $101.33, indicating a potential upside of 124.06%. Given LGN’s stronger consensus rating and higher possible upside, analysts plainly believe LGN is more favorable than Dycom Industries.

Summary

Dycom Industries beats LGN on 8 of the 13 factors compared between the two stocks.

About Dycom Industries

(Get Free Report)

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.

About LGN

(Get Free Report)

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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