Critical Review: Obayashi (OTCMKTS:OBYCF) versus Ameresco (AMRC)

Ameresco (NYSE:AMRC) and Obayashi (OTCMKTS:OBYCF) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Risk & Volatility

Ameresco has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Obayashi has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Insider & Institutional Ownership

29.8% of Ameresco shares are owned by institutional investors. 57.9% of Ameresco shares are owned by 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 Ameresco and Obayashi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ameresco 4.83% 10.56% 3.49%
Obayashi N/A N/A N/A

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ameresco $787.14 million 0.95 $37.98 million $0.81 20.15
Obayashi $17.16 billion N/A $872.20 million N/A N/A

Obayashi has higher revenue and earnings than Ameresco.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ameresco and Obayashi, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ameresco 0 0 4 0 3.00
Obayashi 0 0 0 0 N/A

Ameresco currently has a consensus target price of $18.63, indicating a potential upside of 14.12%.

Summary

Ameresco beats Obayashi on 8 of the 10 factors compared between the two stocks.

Ameresco Company Profile

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.

Obayashi Company Profile

Obayashi Corp. engages in the construction and real estate business. It operates through the following segments: Domestic Building Construction, Overseas Building Construction, Domestic Civil Engineering, Overseas Civil Engineering, Real Estate, and Others. The Domestic Building Construction segment engages in building construction contracts and related businesses within Japan. The Overseas Building Construction segment engages in building construction contracts and related businesses outside Japan. The Domestic Civil Engineering segment handles civil engineering construction contracts and related businesses within Japan. The Overseas Civil Engineering segment deals with civil engineering construction contracts and related businesses outside Japan. The Real Estate segment handles the purchase, sale, development and rent of real estate properties. The Others segment engages in Private Finance Initiative (PFI), finance, renewable energy, and operation of golf courses. The company was founded by Yoshigoro Obayashi in January 1892 and is headquartered in Tokyo, Japan.

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