Financial Comparison: Obayashi (OBYCF) and Limbach (LMB)

Obayashi (OTCMKTS:OBYCF) and Limbach (NASDAQ:LMB) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

38.1% of Limbach shares are held by institutional investors. 47.9% of Limbach shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Obayashi and Limbach, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obayashi 0 0 0 0 N/A
Limbach 0 1 1 0 2.50

Limbach has a consensus target price of $6.50, suggesting a potential upside of 19.56%. Given Limbach’s higher possible upside, analysts plainly believe Limbach is more favorable than Obayashi.

Profitability

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

Net Margins Return on Equity Return on Assets
Obayashi 4.76% 13.84% 4.64%
Limbach -0.78% -5.30% -1.06%

Earnings & Valuation

This table compares Obayashi and Limbach’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Obayashi $17.16 billion N/A $872.20 million N/A N/A
Limbach $485.74 million 0.08 $710,000.00 $0.22 24.71

Obayashi has higher revenue and earnings than Limbach.

Risk & Volatility

Obayashi has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Limbach has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Summary

Obayashi beats Limbach on 6 of the 11 factors compared between the two stocks.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, riverbanks, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in metropolitan areas; solar power generation and private finance initiatives businesses; and operation of golf course, as well as provision of urban development, contracted engineering, management, consultancy services, etc. The company was founded in 1892 and is headquartered in Tokyo, Japan.

About Limbach

Limbach Holdings, Inc. provides commercial specialty contract services in the United States. It operates in two segments, Construction and Service. The company provides services in the areas of heating, ventilation, air-conditioning (HVAC), plumbing, electrical, and building controls for the design and construction of new and renovated buildings; maintenance services; and equipment upgrades. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefab construction, and sustainable building solutions and practices. The company's customers include healthcare facilities; education, including schools and universities; sports and amusement, such as sports arenas and related facilities; transportation, including passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; corporate and commercial office buildings; retail and mixed use; residential multifamily apartment buildings; mission critical facilities, including data centers; and industrial manufacturing. It serves customers primarily located in Florida, California, Massachusetts, New Jersey, Pennsylvania, Delaware, Maryland, Washington DC, Virginia, West Virginia, Ohio and Michigan. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

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