Ameresco (NYSE: AMRC) and Limbach (NASDAQ:LMB) are both small-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Volatility & Risk
Ameresco has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Limbach has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Institutional and Insider Ownership
25.8% of Ameresco shares are owned by institutional investors. Comparatively, 27.6% of Limbach shares are owned by institutional investors. 58.4% of Ameresco shares are owned by insiders. Comparatively, 82.9% of Limbach shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Ameresco and Limbach’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Earnings & Valuation
This table compares Ameresco and Limbach’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
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.
This is a summary of recent ratings and recommmendations for Ameresco and Limbach, as provided by MarketBeat.
||Strong Buy Ratings
Ameresco presently has a consensus price target of $11.50, indicating a potential downside of 7.26%. Limbach has a consensus price target of $18.00, indicating a potential upside of 49.50%. Given Limbach’s higher probable upside, analysts plainly believe Limbach is more favorable than Ameresco.
Ameresco beats Limbach on 9 of the 13 factors compared between the two stocks.
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.
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.
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