WallStSmart

Legence Corp. Class A Common stock (LGN)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Legence Corp. Class A Common stock generates 7% more annual revenue ($3.08B vs $2.88B). STRL leads profitability with a 12.0% profit margin vs -0.7%. STRL earns a higher WallStSmart Score of 69/100 (B-).

LGN

Avoid

35

out of 100

Grade: F

Growth: 8.0Profit: 3.0Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.28

STRL

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 8.0Value: 4.3Quality: 7.0
Piotroski: 4/9Altman Z: 2.39

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LGN1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
105.1%10/10

Revenue surging 105.1% year-over-year

STRL4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
91.6%10/10

Revenue surging 91.6% year-over-year

EPS GrowthGrowth
141.4%10/10

Earnings expanding 141.4% YoY

Return on EquityProfitability
29.1%9/10

Every $100 of equity generates 29 in profit

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Areas to Watch

LGN4 concerns · Avg: 3.3/10
Price/BookValuation
14.5x4/10

Trading at 14.5x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

Return on EquityProfitability
-4.5%2/10

ROE of -4.5% — below average capital efficiency

STRL2 concerns · Avg: 2.0/10
P/E RatioValuation
76.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.4x2/10

Trading at 24.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : LGN

The strongest argument for LGN centers on Revenue Growth. Revenue growth of 105.1% demonstrates continued momentum.

Bull Case : STRL

The strongest argument for STRL centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 91.6% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : LGN

The primary concerns for LGN are Price/Book, EPS Growth, Operating Margin.

Bear Case : STRL

The primary concerns for STRL are P/E Ratio, Price/Book. A P/E of 76.9x leaves little room for execution misses.

Key Dynamics to Monitor

LGN profiles as a hypergrowth stock while STRL is a growth play — different risk/reward profiles.

LGN is growing revenue faster at 105.1% — sustainability is the question.

STRL generates stronger free cash flow (146M), providing more financial flexibility.

Monitor ENGINEERING & CONSTRUCTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

STRL scores higher overall (69/100 vs 35/100) and 91.6% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Legence Corp. Class A Common stock

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Legence Corp. The company is headquartered in San Jose, California.

Sterling Construction Company Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.

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