Ameresco (NYSE: AMRC) and Chicago Bridge & Iron (NYSE:CBI) are both small-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Volatility and Risk
Ameresco has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Chicago Bridge & Iron has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500.
This is a summary of current ratings for Ameresco and Chicago Bridge & Iron, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chicago Bridge & Iron||1||10||3||0||2.14|
Ameresco currently has a consensus price target of $13.17, indicating a potential upside of 16.01%. Chicago Bridge & Iron has a consensus price target of $17.00, indicating a potential upside of 3.72%. Given Ameresco’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ameresco is more favorable than Chicago Bridge & Iron.
Earnings and Valuation
This table compares Ameresco and Chicago Bridge & Iron’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||0.75||$37.49 million||$0.76||14.93|
|Chicago Bridge & Iron||$6.67 billion||0.25||-$1.46 billion||($1.86)||-8.81|
Ameresco has higher earnings, but lower revenue than Chicago Bridge & Iron. Chicago Bridge & Iron is trading at a lower price-to-earnings ratio than Ameresco, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
25.9% of Ameresco shares are held by institutional investors. Comparatively, 63.0% of Chicago Bridge & Iron shares are held by institutional investors. 58.4% of Ameresco shares are held by insiders. Comparatively, 1.1% of Chicago Bridge & Iron shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Ameresco and Chicago Bridge & Iron’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chicago Bridge & Iron||-22.27%||-22.97%||-2.61%|
Chicago Bridge & Iron pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Ameresco does not pay a dividend. Chicago Bridge & Iron pays out -3.8% of its earnings in the form of a dividend.
Ameresco beats Chicago Bridge & Iron on 10 of the 15 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.
About Chicago Bridge & Iron
Chicago Bridge & Iron Company N.V. provides services to customers in energy infrastructure market. The Company provides services, such as conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services. Its Engineering and Construction segment provides engineering, procurement, and construction (EPC) services. Its Fabrication Services segment provides fabrication and erection of steel plate structures; fabrication of piping systems and process modules, and manufacturing and distribution of pipe and fittings. The Technology segment provides process technology licenses and associated engineering services, and catalysts, for petrochemical and refining industries, and offers process planning and project development services.
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