Matrix Service (NASDAQ: MTRX) and Ameresco (NYSE:AMRC) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Earnings & Valuation

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This table compares Matrix Service and Ameresco’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Matrix Service $1.20 billion 0.35 -$180,000.00 ($0.01) -1,545.00
Ameresco $717.15 million 0.77 $37.49 million $0.76 15.92

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

Insider and Institutional Ownership

91.6% of Matrix Service shares are owned by institutional investors. Comparatively, 25.8% of Ameresco shares are owned by institutional investors. 2.5% of Matrix Service shares are owned by company insiders. Comparatively, 58.4% of Ameresco shares are owned by company 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.

Volatility and Risk

Matrix Service has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Ameresco has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Matrix Service -0.59% -1.97% -1.12%
Ameresco 5.23% 11.18% 3.90%

Analyst Ratings

This is a breakdown of recent ratings for Matrix Service and Ameresco, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Matrix Service 0 2 0 0 2.00
Ameresco 0 0 3 0 3.00

Ameresco has a consensus price target of $11.50, suggesting a potential downside of 4.96%. Given Ameresco’s stronger consensus rating and higher possible upside, analysts plainly believe Ameresco is more favorable than Matrix Service.

Summary

Ameresco beats Matrix Service on 11 of the 14 factors compared between the two stocks.

About Matrix Service

Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, and mining and minerals markets in the United States, Canada, and internationally. The company's Electrical Infrastructure segment offers construction and maintenance services to various power generation facilities, such as combined cycle plants, natural gas fired power stations, and renewable energy installations; and high voltage services comprising the construction of new substations, upgrading existing substations, short-run transmission line installations, distribution upgrades and maintenance, and storm restoration services to investor owned utilities. Its Oil Gas & Chemical segment provides turnaround, plant maintenance, engineering, and construction services for the downstream and midstream petroleum industries; and hydro blasting, hydro excavating, chemical cleaning, and vacuum services, as well as performs work in the petrochemical, natural gas, gas processing and compression, and upstream petroleum markets. The company's Storage Solutions segment constructs crude and refined products aboveground storage tanks; and provides planned and emergency maintenance services. This segment also undertakes work related to liquefied natural gas, liquid nitrogen/liquid oxygen, liquid petroleum tanks, and other specialty vessels, including spheres; and plant work in storage terminals and tank farms, as well as provides geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Its Industrial segment constructs and maintains work in the iron and steel, mining and minerals, and agricultural industries, as well as performs work in bulk material handling, fertilizer production facilities, thermal vacuum chambers, and other industrial markets. The company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

About Ameresco

Ameresco, Inc. provides comprehensive energy services for businesses and organizations in North America and Europe. It offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions. The company operates through U.S. Regions, U.S. Federal, Canada, and Non-Solar Distributed Generation segments. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance costs of customers' facilities. The company's 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. It also offers renewable energy products and services, such as the construction of small-scale plants for customers that produce electricity, gas, heat, or cooling from renewable sources of energy; and sells electricity and processed renewable gas fuel, heat, or cooling. In addition, the company provides enterprise energy management and consulting services; and sells solar photovoltaic (PV) energy products and systems. It serves federal, state, and local governments, as well as healthcare and educational institutions, housing authorities, and commercial and industrial customers. As of December 31, 2017, the company owned and operated 73 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was founded in 2000 and is headquartered in Framingham, Massachusetts.

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