Comparing Limbach (NASDAQ:LMB) & Tutor Perini (NYSE:TPC)

Tutor Perini (NYSE:TPC) and Limbach (NASDAQ:LMB) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

65.0% of Tutor Perini shares are owned by institutional investors. Comparatively, 55.8% of Limbach shares are owned by institutional investors. 15.4% of Tutor Perini shares are owned by insiders. Comparatively, 7.0% of Limbach shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Tutor Perini has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Limbach has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tutor Perini	2.08%	20.95%	5.15%
Limbach	4.42%	23.22%	11.48%

Earnings and Valuation

This table compares Tutor Perini and Limbach”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tutor Perini	$5.54 billion	0.81	$80.44 million	$2.32	36.68
Limbach	$646.80 million	0.95	$39.06 million	$2.50	20.70

Tutor Perini has higher revenue and earnings than Limbach. Limbach is trading at a lower price-to-earnings ratio than Tutor Perini, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tutor Perini and Limbach, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tutor Perini	1	0	2	1	2.75
Limbach	2	1	2	0	2.00

Tutor Perini currently has a consensus target price of $105.00, indicating a potential upside of 23.38%. Limbach has a consensus target price of $70.25, indicating a potential upside of 35.78%. Given Limbach’s higher probable upside, analysts plainly believe Limbach is more favorable than Tutor Perini.

Summary

Tutor Perini beats Limbach on 8 of the 14 factors compared between the two stocks.

About Tutor Perini

Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies in the United States and internationally. It operates through three segments: Civil, Building, and Specialty Contractors. The Civil segment engages in the public works construction and the replacement and reconstruction of infrastructure; and offers contracting services, including construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities, as well as provides drilling, foundation, and excavation support for shoring, bridges, piers, roads, and highway projects. The Building segment offers range of services in various specialized building markets, such as hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional and detention facilities, biotech, pharmaceutical, industrial, and technology. The Specialty Contractors segment provides electrical, mechanical, plumbing, and fire protection systems, as well as heating, ventilation, and air conditioning services (HVAC) for civil and building construction projects in industrial, commercial, hospitality and gaming, and mass-transit end markets. It also offers pre-construction planning and project management services comprising planning and scheduling of the manpower, equipment, materials, and subcontractor services; and self-performed construction services consisting of site work, concrete forming and placement, and steel erection. The company was formerly known as Perini Corporation and changed its name to Tutor Perini Corporation in May 2009. Tutor Perini Corporation was founded in 1894 and is headquartered in Sylmar, California.

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.