Contrasting Energy Services of America (NASDAQ:ESOA) & Ameresco (NYSE:AMRC)

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

Profitability

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

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

Earnings and Valuation

This table compares Energy Services of America and Ameresco”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energy Services of America	$467.37 million	N/A	N/A	$0.18	55.68
Ameresco	$1.93 billion	0.57	$44.28 million	$0.52	40.19

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

2.1% of Energy Services of America shares are held by institutional investors. Comparatively, 99.2% of Ameresco shares are held by institutional investors. 44.7% of Energy Services of America shares are held by insiders. Comparatively, 45.1% of Ameresco 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 Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Services of America	0	2	2	0	2.50
Ameresco	2	5	6	1	2.43

Energy Services of America presently has a consensus price target of $22.50, indicating a potential upside of 120.80%. Ameresco has a consensus price target of $41.89, indicating a potential upside of 100.43%. Given Energy Services of America’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Energy Services of America is more favorable than Ameresco.

Summary

Ameresco beats Energy Services of America on 9 of the 12 factors compared between the two stocks.

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.

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.