Comparing Ameresco (NYSE:AMRC) & Connectm Technology Solutions (NASDAQ:CNTM)

Connectm Technology Solutions (NASDAQ:CNTM) and Ameresco (NYSE:AMRC) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider & Institutional Ownership

79.6% of Connectm Technology Solutions shares are held by institutional investors. Comparatively, 99.2% of Ameresco shares are held by institutional investors. 17.5% of Connectm Technology Solutions shares are held by company insiders. Comparatively, 42.0% of Ameresco shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Connectm Technology Solutions and Ameresco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Connectm Technology Solutions	0	0	0	0	0.00
Ameresco	0	4	8	1	2.77

Ameresco has a consensus price target of $36.73, suggesting a potential upside of 16.04%. Given Ameresco’s stronger consensus rating and higher probable upside, analysts plainly believe Ameresco is more favorable than Connectm Technology Solutions.

Volatility & Risk

Connectm Technology Solutions has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Ameresco has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Valuation and Earnings

This table compares Connectm Technology Solutions and Ameresco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Connectm Technology Solutions	N/A	N/A	-$14.94 million	N/A	N/A
Ameresco	$1.51 billion	1.10	$62.47 million	$1.07	29.58

Ameresco has higher revenue and earnings than Connectm Technology Solutions.

Profitability

This table compares Connectm Technology Solutions and Ameresco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Connectm Technology Solutions	N/A	N/A	-20.55%
Ameresco	3.77%	6.25%	1.54%

Summary

Ameresco beats Connectm Technology Solutions on 12 of the 12 factors compared between the two stocks.

About Connectm Technology Solutions

ConnectM Technology Solutions, Inc., a technology company, focuses on advancing the electrification economy by integrating electrified energy assets with its AI-driven technology solutions platform. It provides residential and light commercial buildings, and all-electric original equipment manufacturers with a platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. The company was incorporated in 2021 and is headquartered in Marlborough, Massachusetts.

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.