Financial Analysis: Limbach (LMB) versus Its Rivals

Limbach (NASDAQ:LMB) is one of 188 public companies in the “Construction & Engineering” industry, but how does it contrast to its peers? We will compare Limbach to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Valuation and Earnings

This table compares Limbach and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Limbach	$646.80 million	$39.06 million	22.29
Limbach Competitors	$9.57 billion	$456.60 million	-5,815.00

Limbach’s peers have higher revenue and earnings than Limbach. Limbach is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Limbach and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Limbach	4.23%	24.40%	11.29%
Limbach Competitors	-4.01%	2.74%	3.81%

Institutional and Insider Ownership

55.8% of Limbach shares are held by institutional investors. Comparatively, 48.9% of shares of all “Construction & Engineering” companies are held by institutional investors. 7.0% of Limbach shares are held by company insiders. Comparatively, 20.9% of shares of all “Construction & Engineering” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Limbach has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Limbach’s peers have a beta of 1.60, suggesting that their average share price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Limbach and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Limbach	1	2	2	0	2.20
Limbach Competitors	850	3467	7359	362	2.60

Limbach presently has a consensus price target of $70.25, suggesting a potential upside of 23.09%. As a group, “Construction & Engineering” companies have a potential upside of 42.71%. Given Limbach’s peers stronger consensus rating and higher probable upside, analysts clearly believe Limbach has less favorable growth aspects than its peers.

Summary

Limbach peers beat Limbach on 8 of the 13 factors compared.

About Limbach

Limbach Holdings, Inc. operates as a building systems solution company in the United States. It operates through two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the construction and renovation projects that involve primarily include mechanical, plumbing, and electrical services. It also provides critical system repair, MEP infrastructure projects, maintenance contracts, building automation upgrades, data driven insights, and program management services. In addition, it offers captive engineering capabilities, estimating and virtual design; and professional engineering, energy analysis, estimation, and detail design and three-dimensional building installation coordination services. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers; sports arenas; entertainment facilities, and amusement rides and parks; data centers; automotive, energy and general manufacturing plants; and life sciences, including organizations and companies, whose work is centered around research and development focused on living things. Limbach Holdings, Inc. was founded in 1901 and is headquartered in Warrendale, Pennsylvania.