LGN (NASDAQ:LGN) and Southland (NASDAQ:SLND) Critical Contrast

LGN (NASDAQ:LGN) and Southland (NASDAQ:SLND) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Risk & Volatility

LGN has a beta of 3.42, meaning that its share price is 242% more volatile than the S&P 500. Comparatively, Southland has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

2.8% of Southland shares are owned by institutional investors. 0.0% of LGN shares are owned by company insiders. Comparatively, 73.4% of Southland shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for LGN and Southland, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	2	10	1	2.79
Southland	0	1	0	0	2.00

LGN currently has a consensus price target of $96.67, suggesting a potential upside of 160.63%. Given LGN’s stronger consensus rating and higher probable upside, equities research analysts plainly believe LGN is more favorable than Southland.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LGN	-1.20%	4.33%	1.23%
Southland	-10.38%	-47.71%	-8.75%

Valuation & Earnings

This table compares LGN and Southland”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGN	$2.55 billion	1.57	-$59.78 million	$0.40	92.73
Southland	$603.01 million	0.06	-$19.25 million	($7.46)	-0.08

Southland has lower revenue, but higher earnings than LGN. Southland is trading at a lower price-to-earnings ratio than LGN, indicating that it is currently the more affordable of the two stocks.

Summary

LGN beats Southland on 12 of the 15 factors compared between the two stocks.

About LGN

Legence Corp. provides engineering, installation and maintenance services for building systems. Its work includes heating, ventilation and air conditioning, plumbing, electrical systems, process piping, building automation and energy solutions. The company serves customers with complex building needs, including in the data center, healthcare, life sciences, commercial and industrial sectors. Its services span the building lifecycle, from design and construction to ongoing operations and maintenance.

About Southland

Southland Holdings, Inc. (NASDAQ: SLND) is an infrastructure construction company that delivers complex heavy civil, transportation and marine construction services. The company works on projects involving bridges, tunnels, highways, rail systems, airports, water and wastewater infrastructure, dams, ports and other large-scale public and private facilities. Its capabilities include general contracting, design-build construction, deep foundations, tunneling, dredging, marine structures, structural rehabilitation and specialty engineering.