Layne Christensen (LAYN) vs. Lime Energy (LIME) Critical Survey

Layne Christensen (NASDAQ:LAYN) and Lime Energy (OTCMKTS:LIME) are both small-cap construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Valuation and Earnings

This table compares Layne Christensen and Lime Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Layne Christensen $475.52 million 0.65 -$27.31 million ($0.72) -21.40
Lime Energy $112.62 million 0.49 -$3.15 million N/A N/A

Lime Energy has lower revenue, but higher earnings than Layne Christensen.

Risk and Volatility

Layne Christensen has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Lime Energy has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Layne Christensen and Lime Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Layne Christensen 0 1 0 0 2.00
Lime Energy 0 0 0 0 N/A

Layne Christensen currently has a consensus target price of $15.00, suggesting a potential downside of 2.66%. Given Layne Christensen’s higher probable upside, analysts clearly believe Layne Christensen is more favorable than Lime Energy.

Profitability

This table compares Layne Christensen and Lime Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Layne Christensen -0.36% -18.72% -2.80%
Lime Energy N/A N/A N/A

Insider & Institutional Ownership

98.3% of Layne Christensen shares are owned by institutional investors. 12.0% of Layne Christensen shares are owned by insiders. Comparatively, 3.8% of Lime Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Layne Christensen Company Profile

Layne Christensen Company operates as a water management, and services and drilling company that provides solutions for the water, mineral, and energy markets. The company's Water Resources segment offers water-related products and services, including hydrologic design, source of supply exploration, well and intake construction, and well and pump maintenance and rehabilitation services. This segment also provides water treatment equipment and engineering services for the treatment of regulated and nuisance contaminants. Its Inliner segment offers process, sanitary, and storm water rehabilitation techniques and services to municipalities and industrial customers dealing with aging infrastructure needs. This segment also provides full system renewal services, including Janssen structural renewal for service lateral connections and mainlines, slip lining, traditional excavation and replacement, and form and manhole renewal with cementitious and epoxy products. The company's Mineral Services segment conducts ground drilling activities, including various phases of core drilling, reverse circulation, dual tube, hammer, and rotary air-blast methods; and provides exploratory and definitional drilling services. Layne Christensen Company serves government agencies, investor-owned utilities, industrial companies, multi-national mining companies, consulting engineering firms, oil and gas companies, and power companies, as well as the agribusiness. It operates in the United States, Canada, Brazil, and Mexico. The company was formerly known as Layne Inc. and changed its name to Layne Christensen Company in June 1996. Layne Christensen Company was founded in 1882 and is headquartered in The Woodlands, Texas.

Lime Energy Company Profile

Lime Energy Co. engages in the designing and implementing energy efficiency programs for utilities in the United States. It offers direct install energy efficiency solutions for small and mid-size commercial and industrial business programs to enhance energy efficiency, and reduce energy-related expenditures and the impact of energy use on the environment. The company's solutions comprise energy efficient lighting upgrades and energy efficient mechanical upgrades. It also provides utility program management and implementation services, which comprise program design, program administration, customer recruitment-marketing and sales, and auditing and implementation of energy efficiency projects. The company was formerly known as Electric City Corp. and changed its name to Lime Energy Co. in September 2006. Lime Energy Co. was founded in 1997 and is headquartered in Newark, New Jersey.

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