Real Goods Solar (NASDAQ: RGSE) and Limbach (NASDAQ:LMB) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

Real Goods Solar has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Limbach has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Real Goods Solar and Limbach, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Real Goods Solar 0 0 0 0 N/A
Limbach 0 0 2 0 3.00

Limbach has a consensus target price of $16.00, suggesting a potential upside of 38.41%. Given Limbach’s higher possible upside, analysts clearly believe Limbach is more favorable than Real Goods Solar.

Insider & Institutional Ownership

2.1% of Real Goods Solar shares are held by institutional investors. Comparatively, 29.1% of Limbach shares are held by institutional investors. 0.3% of Real Goods Solar shares are held by insiders. Comparatively, 82.9% of Limbach shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Real Goods Solar and Limbach’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Real Goods Solar -125.52% -222.80% -112.89%
Limbach -0.15% 3.00% 0.68%

Earnings and Valuation

This table compares Real Goods Solar and Limbach’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Real Goods Solar $15.17 million 0.79 -$17.70 million N/A N/A
Limbach $485.74 million 0.18 $710,000.00 $0.22 52.55

Limbach has higher revenue and earnings than Real Goods Solar.

Summary

Limbach beats Real Goods Solar on 9 of the 11 factors compared between the two stocks.

About Real Goods Solar

Real Goods Solar, Inc. operates as a residential and small business commercial solar energy engineering, procurement, and construction company in the United States. The company's Residential segment installs solar energy systems for homeowners, including lease financing, as well as small business commercial services in the continental U.S. Its Sunetric segment installs solar energy systems for homeowners and business owners in Hawaii. The company offers solar energy services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty. It installs residential solar energy systems up to 24 kilowatts (kW) in size; and small commercial solar energy systems up to 500 kW in size for various industries, such as retail, manufacturing, service, and municipal services. The company markets its products and services through an outside sales team, inside sales, e-sales, customer referral programs, and alliances and channel partnerships, as well as an online direct marketing channel. Real Goods Solar, Inc. was founded in 1978 and is headquartered in Denver, Colorado.

About Limbach

Limbach Holdings, Inc. provides commercial specialty contract services in the United States. It operates in two segments, Construction and Service. The company provides services in the areas of heating, ventilation, air-conditioning (HVAC), plumbing, electrical, and building controls for the design and construction of new and renovated buildings; maintenance services; and equipment upgrades. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefab construction, and sustainable building solutions and practices. The company's customers include healthcare facilities; education, including schools and universities; sports and amusement, such as sports arenas and related facilities; transportation, including passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; corporate and commercial office buildings; retail and mixed use; residential multifamily apartment buildings; mission critical facilities, including data centers; and industrial manufacturing. It serves customers primarily located in Florida, California, Massachusetts, New Jersey, Pennsylvania, Delaware, Maryland, Washington DC, Virginia, West Virginia, Ohio and Michigan. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

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