Limbach (NASDAQ: LMB) and Ameresco (NYSE:AMRC) are both small-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
This table compares Limbach and Ameresco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings for Limbach and Ameresco, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Limbach currently has a consensus target price of $18.00, indicating a potential upside of 46.70%. Ameresco has a consensus target price of $11.50, indicating a potential downside of 9.09%. Given Limbach’s higher probable upside, analysts plainly believe Limbach is more favorable than Ameresco.
Institutional and Insider Ownership
27.6% of Limbach shares are owned by institutional investors. Comparatively, 25.8% of Ameresco shares are owned by institutional investors. 82.9% of Limbach shares are owned by insiders. Comparatively, 58.4% of Ameresco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Limbach has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Ameresco has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Earnings & Valuation
This table compares Limbach and Ameresco’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ameresco||$717.15 million||0.80||$37.49 million||$0.76||16.64|
Ameresco has higher revenue and earnings than Limbach. Ameresco is trading at a lower price-to-earnings ratio than Limbach, indicating that it is currently the more affordable of the two stocks.
Ameresco beats Limbach on 9 of the 13 factors compared between the two stocks.
Limbach Holdings, Inc. provides commercial specialty contract services in the United States. It operates in two segments, Construction and Service. The company provides services in the areas of heating, ventilation, air-conditioning (HVAC), plumbing, electrical, and building controls for the design and construction of new and renovated buildings; maintenance services; and equipment upgrades. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefab construction, and sustainable building solutions and practices. The company's customers include healthcare facilities; education, including schools and universities; sports and amusement, such as sports arenas and related facilities; transportation, including passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; corporate and commercial office buildings; retail and mixed use; residential multifamily apartment buildings; mission critical facilities, including data centers; and industrial manufacturing. It serves customers primarily located in Florida, California, Massachusetts, New Jersey, Pennsylvania, Delaware, Maryland, Washington DC, Virginia, West Virginia, Ohio and Michigan. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.
Ameresco, Inc. provides comprehensive energy services for businesses and organizations in North America and Europe. It offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions. The company operates through U.S. Regions, U.S. Federal, Canada, and Non-Solar Distributed Generation segments. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance costs of customers' facilities. The company's projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems. It also offers renewable energy products and services, such as the construction of small-scale plants for customers that produce electricity, gas, heat, or cooling from renewable sources of energy; and sells electricity and processed renewable gas fuel, heat, or cooling. In addition, the company provides enterprise energy management and consulting services; and sells solar photovoltaic (PV) energy products and systems. It serves federal, state, and local governments, as well as healthcare and educational institutions, housing authorities, and commercial and industrial customers. As of December 31, 2017, the company owned and operated 73 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was founded in 2000 and is headquartered in Framingham, Massachusetts.
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