Comparing Ameresco (NYSE:AMRC) and Clean Energy Technologies (NASDAQ:CETY)

Clean Energy Technologies (NASDAQ:CETY) and Ameresco (NYSE:AMRC) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

0.5% of Clean Energy Technologies shares are held by institutional investors. Comparatively, 99.2% of Ameresco shares are held by institutional investors. 37.5% of Clean Energy Technologies shares are held by company insiders. Comparatively, 45.0% of Ameresco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Clean Energy Technologies and Ameresco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clean Energy Technologies	$2.42 million	1.63	-$4.42 million	($1.22)	-0.60
Ameresco	$1.77 billion	0.92	$56.76 million	$1.19	25.80

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

Volatility and Risk

Clean Energy Technologies has a beta of -1.41, suggesting that its share price is 241% less volatile than the S&P 500. Comparatively, Ameresco has a beta of 2.5, suggesting that its share price is 150% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Clean Energy Technologies and Ameresco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clean Energy Technologies	1	0	0	0	1.00
Ameresco	0	4	7	1	2.75

Ameresco has a consensus price target of $37.70, suggesting a potential upside of 22.81%. Given Ameresco’s stronger consensus rating and higher possible upside, analysts plainly believe Ameresco is more favorable than Clean Energy Technologies.

Profitability

This table compares Clean Energy Technologies and Ameresco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clean Energy Technologies	-192.29%	-84.63%	-35.69%
Ameresco	3.34%	6.97%	1.74%

Summary

Ameresco beats Clean Energy Technologies on 13 of the 14 factors compared between the two stocks.

About Clean Energy Technologies

Clean Energy Technologies, Inc. designs, produces, and markets clean energy products and integrated solutions that focuses on energy efficiency and renewable energy in the United States. It operates through four segments: Clean Energy HRS and CETY Europe, CETY Renewables Waste to Energy Solutions, engineering and Manufacturing Business, and CETY HK. The company offers Clean Cycle, which generates electricity by recycling wasted heat produced in manufacturing, waste to energy, and power generation facilities. It also converts waste products created in manufacturing, agriculture, wastewater treatment plants, and other industries to electricity, renewable natural gas, hydrogen, and bio char. In addition, the company offers engineering, consulting, and project management solutions. Further, the company is involved in the sourcing and suppling of liquefied natural gas to industries and municipalities located in the southern part of Sichuan Province and portions of Yunnan Province. The company was formerly known as Probe Manufacturing, Inc. and changed its name to Clean Energy Technologies, Inc. in November 2015. Clean Energy Technologies, Inc. was founded in 1993 and is headquartered in Irvine, California. Clean Energy Technologies, Inc. is a subsidiary of MGW Investment I Ltd.

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.