Analyzing IES (NASDAQ:IESC) and Ameresco (NYSE:AMRC)

IES (NASDAQ:IESC) and Ameresco (NYSE:AMRC) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility & Risk

IES has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Ameresco has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IES	$3.99 billion	2.40	$303.06 million	$11.26	21.34
Ameresco	$1.93 billion	0.53	$44.28 million	$0.52	37.28

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

Institutional & Insider Ownership

86.6% of IES shares are owned by institutional investors. Comparatively, 99.2% of Ameresco shares are owned by institutional investors. 56.4% of IES shares are owned by company insiders. Comparatively, 45.1% of Ameresco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IES	11.40%	35.70%	19.68%
Ameresco	1.40%	2.82%	0.72%

Analyst Ratings

This is a summary of current ratings and target prices for IES and Ameresco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IES	0	1	2	0	2.67
Ameresco	2	5	6	1	2.43

IES currently has a consensus target price of $334.50, suggesting a potential upside of 39.18%. Ameresco has a consensus target price of $41.89, suggesting a potential upside of 116.06%. Given Ameresco’s higher probable upside, analysts clearly believe Ameresco is more favorable than IES.

Summary

IES beats Ameresco on 9 of the 15 factors compared between the two stocks.

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.

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.