Head-To-Head Analysis: Limbach (NASDAQ:LMB) & Primoris Services (NYSE:PRIM)

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

Insider and Institutional Ownership

91.8% of Primoris Services shares are owned by institutional investors. Comparatively, 55.8% of Limbach shares are owned by institutional investors. 1.1% of Primoris Services shares are owned by company insiders. Comparatively, 7.0% of Limbach shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Primoris Services has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Limbach has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Valuation and Earnings

This table compares Primoris Services and Limbach”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primoris Services	$7.57 billion	0.55	$274.90 million	$2.55	30.26
Limbach	$646.80 million	0.79	$39.06 million	$2.50	17.16

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Primoris Services	1.92%	9.96%	3.67%
Limbach	4.42%	23.22%	11.48%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Primoris Services and Limbach, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primoris Services	1	5	11	0	2.59
Limbach	2	1	1	0	1.75

Primoris Services currently has a consensus price target of $132.27, suggesting a potential upside of 71.40%. Limbach has a consensus price target of $62.00, suggesting a potential upside of 44.52%. Given Primoris Services’ stronger consensus rating and higher possible upside, analysts plainly believe Primoris Services is more favorable than Limbach.

Summary

Primoris Services beats Limbach on 8 of the 14 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 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.