Financial Analysis: Lime Energy (LIME) & Brookfield Business Partners (BBU)

Lime Energy (OTCMKTS:LIME) and Brookfield Business Partners (NYSE:BBU) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

75.1% of Brookfield Business Partners shares are held by institutional investors. 3.8% of Lime Energy shares are held by company 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 and Volatility

Lime Energy has a beta of -0.4, indicating that its share price is 140% less volatile than the S&P 500. Comparatively, Brookfield Business Partners has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Dividends

Brookfield Business Partners pays an annual dividend of $0.25 per share and has a dividend yield of 0.6%. Lime Energy does not pay a dividend.

Profitability

This table compares Lime Energy and Brookfield Business Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lime Energy N/A N/A N/A
Brookfield Business Partners 3.24% 18.34% 4.78%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lime Energy and Brookfield Business Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lime Energy 0 0 0 0 N/A
Brookfield Business Partners 0 2 3 0 2.60

Brookfield Business Partners has a consensus target price of $47.20, suggesting a potential upside of 19.43%.

Earnings & Valuation

This table compares Lime Energy and Brookfield Business Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lime Energy N/A N/A N/A N/A N/A
Brookfield Business Partners $37.17 billion 0.07 $74.00 million N/A N/A

Brookfield Business Partners has higher revenue and earnings than Lime Energy.

Summary

Brookfield Business Partners beats Lime Energy on 8 of the 9 factors compared between the two stocks.

About Lime Energy

Lime Energy Co. engages in the designing and implementing energy efficiency programs for utilities in the United States. It offers direct install energy efficiency solutions for small and mid-size commercial and industrial business programs to enhance energy efficiency, and reduce energy-related expenditures and the impact of energy use on the environment. The company's solutions comprise energy efficient lighting upgrades and energy efficient mechanical upgrades. It also provides utility program management and implementation services, which comprise program design, program administration, customer recruitment-marketing and sales, and auditing and implementation of energy efficiency projects. The company was formerly known as Electric City Corp. and changed its name to Lime Energy Co. in September 2006. Lime Energy Co. was founded in 1997 and is headquartered in Newark, New Jersey.

About Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm specializes in acquisition. The firm typically invests in business services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Asset Management Inc.

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