Analyzing Limbach (NASDAQ:LMB) & Rollins (NYSE:ROL)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Limbach	$518.78 million	3.16	$30.88 million	$2.79	50.60
Rollins	$3.39 billion	8.17	$466.38 million	$0.99	57.71

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

Insider and Institutional Ownership

55.9% of Limbach shares are owned by institutional investors. Comparatively, 51.8% of Rollins shares are owned by institutional investors. 10.2% of Limbach shares are owned by insiders. Comparatively, 4.5% of Rollins shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Limbach and Rollins, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Limbach	0	0	4	0	3.00
Rollins	0	4	5	0	2.56

Limbach currently has a consensus price target of $115.33, suggesting a potential downside of 18.30%. Rollins has a consensus price target of $58.56, suggesting a potential upside of 2.48%. Given Rollins’ higher possible upside, analysts plainly believe Rollins is more favorable than Limbach.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Limbach	6.29%	27.66%	12.39%
Rollins	13.78%	37.31%	17.22%

Risk and Volatility

Limbach has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Rollins has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Summary

Rollins beats Limbach on 9 of the 14 factors compared between the two stocks.

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.

About Rollins

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.