LGN vs EME

For growth investors, Legence Corp.

Class A Common stock (LGN) is the stronger pick with 29. 9% revenue growth year-over-year, versus 16. 6% for EMCOR Group, Inc. (EME). EMCOR Group, Inc. (EME) offers the better valuation at 32. 8x trailing P/E (31. 6x forward), making it the more compelling value choice. Analysts rate Legence Corp. Class A Common stock (LGN) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, EMCOR Group, Inc.

(EME) is the cheapest at 32. 8x versus Legence Corp. Class A Common stock at 1020. 3x. On forward P/E, EMCOR Group, Inc. is actually cheaper at 31. 6x.

Over the past 5 years, EMCOR Group, Inc.

(EME) delivered a total return of +640. 8%, compared to +219. 5% for Legence Corp. Class A Common stock (LGN). Over 10 years, the gap is even starker: EME returned +1863% versus LGN's +219. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), EMCOR Group, Inc.

(EME) is the lower-risk stock at 1. 64β versus Legence Corp. Class A Common stock's 2. 49β — meaning LGN is approximately 52% more volatile than EME relative to the S&P 500.

By revenue growth (latest reported year), Legence Corp.

Class A Common stock (LGN) is pulling ahead at 29. 9% versus 16. 6% for EMCOR Group, Inc. (EME). On earnings-per-share growth, the picture is similar: Legence Corp. Class A Common stock grew EPS 121. 2% year-over-year, compared to 31. 0% for EMCOR Group, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

EMCOR Group, Inc.

(EME) is the more profitable company, earning 7. 5% net margin versus 0. 5% for Legence Corp. Class A Common stock — meaning it keeps 7. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EME leads at 9. 8% versus 2. 8% for LGN. At the gross margin level — before operating expenses — LGN leads at 20. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, EMCOR Group, Inc.

(EME) trades at 31. 6x forward P/E versus 97. 7x for Legence Corp. Class A Common stock — 66. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EME: 0. 8% to $931. 50.

All stocks in this comparison pay dividends.

Legence Corp. Class A Common stock (LGN) offers the highest yield at 3. 0%, versus 0. 1% for EMCOR Group, Inc. (EME).

For long-horizon retirement investors, EMCOR Group, Inc.

(EME) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1863% 10Y return). Legence Corp. Class A Common stock (LGN) carries a higher beta of 2. 49 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (EME: +1863%, LGN: +219. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

LGN pays a dividend while EME does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.