Analyzing LGN (NASDAQ:LGN) & APi Group (NYSE:APG)

APi Group (NYSE:APG) and LGN (NASDAQ:LGN) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APi Group	$7.91 billion	2.22	$302.00 million	($0.67)	-60.67
LGN	$2.55 billion	2.03	-$59.78 million	$0.40	119.60

APi Group has higher revenue and earnings than LGN. APi Group 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 APi Group and LGN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
APi Group	3.99%	37.59%	14.07%
LGN	-1.20%	4.33%	1.23%

Insider and Institutional Ownership

86.6% of APi Group shares are held by institutional investors. 18.7% of APi Group shares are held by company insiders. Comparatively, 0.0% of LGN shares are held 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for APi Group and LGN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APi Group	0	1	6	1	3.00
LGN	1	1	10	2	2.93

APi Group currently has a consensus price target of $52.71, suggesting a potential upside of 29.68%. LGN has a consensus price target of $101.33, suggesting a potential upside of 111.81%. Given LGN’s higher possible upside, analysts plainly believe LGN is more favorable than APi Group.

Summary

APi Group beats LGN on 9 of the 14 factors compared between the two stocks.

About APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

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.