Ameresco (NYSE:AMRC) versus Primoris Services (NYSE:PRIM) Head to Head Comparison

Ameresco (NYSE:AMRC) and Primoris Services (NYSE:PRIM) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Risk and Volatility

Ameresco has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500. Comparatively, Primoris Services has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

99.2% of Ameresco shares are held by institutional investors. Comparatively, 91.8% of Primoris Services shares are held by institutional investors. 45.1% of Ameresco shares are held by insiders. Comparatively, 1.1% of Primoris Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Ameresco and Primoris Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameresco	2	5	6	1	2.43
Primoris Services	0	7	10	0	2.59

Ameresco currently has a consensus target price of $41.89, suggesting a potential upside of 106.04%. Primoris Services has a consensus target price of $123.47, suggesting a potential upside of 69.76%. Given Ameresco’s higher probable upside, equities analysts clearly believe Ameresco is more favorable than Primoris Services.

Profitability

This table compares Ameresco and Primoris Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameresco	1.40%	2.82%	0.72%
Primoris Services	1.92%	9.96%	3.67%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameresco	$2.02 billion	0.53	$44.28 million	$0.52	39.10
Primoris Services	$7.28 billion	0.54	$274.90 million	$2.55	28.52

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

Summary

Primoris Services beats Ameresco on 9 of the 15 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 Primoris Services

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.