Comparing Ameresco (NYSE:AMRC) and Energy Services of America (NASDAQ:ESOA)

Ameresco (NYSE:AMRC) and Energy Services of America (NASDAQ:ESOA) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares Ameresco and Energy Services of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameresco	1.40%	2.82%	0.72%
Energy Services of America	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Ameresco and Energy Services of America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameresco	1	6	6	1	2.50
Energy Services of America	0	2	2	0	2.50

Ameresco presently has a consensus price target of $41.89, indicating a potential upside of 92.73%. Energy Services of America has a consensus price target of $22.50, indicating a potential upside of 116.24%. Given Energy Services of America’s higher probable upside, analysts clearly believe Energy Services of America is more favorable than Ameresco.

Valuation and Earnings

This table compares Ameresco and Energy Services of America”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameresco	$1.93 billion	0.60	$44.28 million	$0.52	41.80
Energy Services of America	$467.37 million	N/A	N/A	$0.18	56.86

Ameresco has higher revenue and earnings than Energy Services of America. Ameresco is trading at a lower price-to-earnings ratio than Energy Services of America, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.2% of Ameresco shares are held by institutional investors. Comparatively, 2.1% of Energy Services of America shares are held by institutional investors. 45.1% of Ameresco shares are held by insiders. Comparatively, 44.7% of Energy Services of America shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Ameresco beats Energy Services of America on 9 of the 11 factors compared between the two stocks.

About Ameresco

Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, Europe, and internationally. It operates through U.S. Regions, U.S. Federal, Canada, Europe, Alternative Fuels, and All Other segments. The company offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities; and 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. In addition, the company offers renewable energy solutions and services, such as the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy. Further, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting, and enterprise energy management services; and operates wind farms. It serves the federal, state, local governments, healthcare and educational institutions, airports, public housing authorities and public universities, municipal utilities, and commercial and industrial customers. As of December 31, 2023, the company owned and operated 185 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was incorporated in 2000 and is headquartered in Framingham, Massachusetts.

About Energy Services of America

Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.