Critical Survey: LGN (NASDAQ:LGN) versus Dycom Industries (NYSE:DY)

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

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%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dycom Industries	$6.88 billion	1.18	$281.19 million	$10.99	24.53
LGN	$3.75 billion	1.55	-$59.78 million	$0.40	134.20

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.

Institutional & Insider Ownership

98.3% of Dycom Industries shares are held by institutional investors. 1.2% of Dycom Industries 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 company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Dycom Industries and LGN, as reported by MarketBeat.

	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 target price of $502.92, indicating a potential upside of 86.59%. LGN has a consensus target price of $99.50, indicating a potential upside of 85.36%. Given Dycom Industries’ higher probable upside, analysts plainly believe Dycom Industries is more favorable than LGN.

Summary

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

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.

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.