LGN vs PWR

For growth investors, Legence Corp.

Class A Common stock (LGN) is the stronger pick with 29. 9% revenue growth year-over-year, versus 19. 8% for Quanta Services, Inc. (PWR). Quanta Services, Inc. (PWR) offers the better valuation at 110. 4x trailing P/E (57. 4x 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, Quanta Services, Inc.

(PWR) is the cheapest at 110. 4x versus Legence Corp. Class A Common stock at 1020. 3x. On forward P/E, Quanta Services, Inc. is actually cheaper at 57. 4x.

Over the past 5 years, Quanta Services, Inc.

(PWR) delivered a total return of +651. 1%, compared to +219. 5% for Legence Corp. Class A Common stock (LGN). Over 10 years, the gap is even starker: PWR returned +31. 4% 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), Quanta Services, Inc.

(PWR) is the lower-risk stock at 1. 30β versus Legence Corp. Class A Common stock's 2. 49β — meaning LGN is approximately 91% more volatile than PWR 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 19. 8% for Quanta Services, Inc. (PWR). On earnings-per-share growth, the picture is similar: Legence Corp. Class A Common stock grew EPS 121. 2% year-over-year, compared to 12. 8% for Quanta Services, 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.

Quanta Services, Inc.

(PWR) is the more profitable company, earning 3. 6% net margin versus 0. 5% for Legence Corp. Class A Common stock — meaning it keeps 3. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PWR leads at 5. 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, Quanta Services, Inc.

(PWR) trades at 57. 4x forward P/E versus 97. 7x for Legence Corp. Class A Common stock — 40. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PWR: -13. 8% to $647. 23.

In this comparison, LGN (3.

0% yield) pays a dividend. PWR does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Legence Corp.

Class A Common stock (LGN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (3. 0% yield, +219. 5% 10Y return). Both have compounded well over 10 years (LGN: +219. 5%, PWR: +31. 4%), 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 PWR 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.