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

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

Institutional & Insider Ownership

99.2% of Ameresco shares are held by institutional investors. Comparatively, 79.6% of Connectm Technology Solutions shares are held by institutional investors. 42.0% of Ameresco shares are held by company insiders. Comparatively, 34.0% of Connectm Technology Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameresco	$1.37 billion	1.06	$62.47 million	$1.00	27.78
Connectm Technology Solutions	$19.42 million	0.91	-$14.94 million	N/A	N/A

Ameresco has higher revenue and earnings than Connectm Technology Solutions.

Volatility & Risk

Ameresco has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Connectm Technology Solutions has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Analyst Recommendations

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

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

Ameresco presently has a consensus price target of $36.91, suggesting a potential upside of 32.86%. Given Ameresco’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ameresco is more favorable than Connectm Technology Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ameresco	3.18%	5.68%	1.38%
Connectm Technology Solutions	N/A	N/A	-20.55%

Summary

Ameresco beats Connectm Technology Solutions on 13 of the 13 factors compared between the two stocks.

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.

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.