Critical Comparison: Ameresco (NYSE:AMRC) and Primoris Services (NYSE:PRIM)

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

Risk & Volatility

Primoris Services has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Ameresco has a beta of 2.5, meaning that its stock price is 150% more volatile than the S&P 500.

Insider & Institutional Ownership

91.8% of Primoris Services shares are owned by institutional investors. Comparatively, 99.2% of Ameresco shares are owned by institutional investors. 1.1% of Primoris Services shares are owned by insiders. Comparatively, 45.1% of Ameresco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Primoris Services	1.36%	7.60%	2.85%
Ameresco	1.40%	2.82%	0.72%

Analyst Ratings

This is a breakdown of current ratings and price targets for Primoris Services and Ameresco, as provided by MarketBeat.com.

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

Primoris Services currently has a consensus target price of $119.33, indicating a potential upside of 74.92%. Ameresco has a consensus target price of $41.00, indicating a potential upside of 92.66%. Given Ameresco’s higher probable upside, analysts clearly believe Ameresco is more favorable than Primoris Services.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primoris Services	$7.57 billion	0.48	$274.90 million	$2.55	26.75
Ameresco	$1.93 billion	0.58	$44.28 million	$0.52	40.92

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

Ameresco beats Primoris Services on 8 of the 15 factors compared between the two stocks.

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.

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.