Analyzing Expand Energy (NASDAQ:EXE) and Ameresco (NYSE:AMRC)

Ameresco (NYSE:AMRC) and Expand Energy (NASDAQ:EXE) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation & Earnings

This table compares Ameresco and Expand Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameresco	$1.77 billion	0.92	$56.76 million	$1.19	25.80
Expand Energy	$4.24 billion	6.17	-$714.00 million	$3.52	31.18

Ameresco has higher earnings, but lower revenue than Expand Energy. Ameresco is trading at a lower price-to-earnings ratio than Expand Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ameresco and Expand Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameresco	0	4	7	1	2.75
Expand Energy	0	3	17	2	2.95

Ameresco currently has a consensus target price of $37.70, indicating a potential upside of 22.81%. Expand Energy has a consensus target price of $129.44, indicating a potential upside of 17.92%. Given Ameresco’s higher possible upside, research analysts plainly believe Ameresco is more favorable than Expand Energy.

Profitability

This table compares Ameresco and Expand Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameresco	3.34%	6.97%	1.74%
Expand Energy	7.99%	6.31%	4.02%

Institutional and Insider Ownership

99.2% of Ameresco shares are held by institutional investors. Comparatively, 97.9% of Expand Energy shares are held by institutional investors. 45.0% of Ameresco shares are held by company insiders. Comparatively, 0.2% of Expand Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Ameresco has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Summary

Expand Energy beats Ameresco on 9 of the 15 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 Expand Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.