IES (NASDAQ:IESC) and Limbach (NASDAQ:LMB) Head-To-Head Survey

Limbach (NASDAQ:LMB) and IES (NASDAQ:IESC) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Valuation and Earnings

This table compares Limbach and IES”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Limbach	$646.80 million	0.88	$39.06 million	$2.50	19.17
IES	$3.37 billion	4.54	$303.06 million	$22.51	34.14

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

Analyst Recommendations

This is a summary of current recommendations for Limbach and IES, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Limbach	0	3	1	0	2.25
IES	0	1	1	0	2.50

Limbach presently has a consensus price target of $97.00, indicating a potential upside of 102.38%. IES has a consensus price target of $458.00, indicating a potential downside of 40.40%. Given Limbach’s higher possible upside, equities research analysts clearly believe Limbach is more favorable than IES.

Insider & Institutional Ownership

55.8% of Limbach shares are held by institutional investors. Comparatively, 86.6% of IES shares are held by institutional investors. 7.0% of Limbach shares are held by insiders. Comparatively, 56.4% of IES shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Limbach and IES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Limbach	4.42%	23.22%	11.48%
IES	11.40%	35.70%	19.68%

Volatility and Risk

Limbach has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, IES has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Summary

IES beats Limbach on 12 of the 13 factors compared between the two stocks.

About Limbach

Limbach Holdings, Inc. operates as a building systems solution company in the United States. It operates through two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the construction and renovation projects that involve primarily include mechanical, plumbing, and electrical services. It also provides critical system repair, MEP infrastructure projects, maintenance contracts, building automation upgrades, data driven insights, and program management services. In addition, it offers captive engineering capabilities, estimating and virtual design; and professional engineering, energy analysis, estimation, and detail design and three-dimensional building installation coordination services. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers; sports arenas; entertainment facilities, and amusement rides and parks; data centers; automotive, energy and general manufacturing plants; and life sciences, including organizations and companies, whose work is centered around research and development focused on living things. Limbach Holdings, Inc. was founded in 1901 and is headquartered in Warrendale, Pennsylvania.

About IES

IES Holdings, Inc. engages in the design and installation of integrated electrical and technology systems, and provides infrastructure products and services in the United States. The Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Houston, Texas.