Critical Analysis: Team (NYSE:TISI) & Limbach (NASDAQ:LMB)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Limbach	0	0	4	0	3.00
Team	0	0	0	0	0.00

Limbach currently has a consensus price target of $129.00, suggesting a potential downside of 13.65%. Given Limbach’s stronger consensus rating and higher probable upside, research analysts plainly believe Limbach is more favorable than Team.

Volatility and Risk

Limbach has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Team has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Insider and Institutional Ownership

55.9% of Limbach shares are held by institutional investors. Comparatively, 46.6% of Team shares are held by institutional investors. 9.7% of Limbach shares are held by insiders. Comparatively, 3.7% of Team shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Limbach	6.29%	27.66%	12.39%
Team	-5.97%	-753.94%	-6.18%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Limbach	$518.78 million	3.35	$30.88 million	$2.79	53.54
Team	$852.27 million	0.10	-$38.27 million	($11.37)	-1.66

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

Summary

Limbach beats Team on 12 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 Team

Team, Inc., together with its subsidiaries, provides a suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services in the United States, Canada, Europe, and internationally. It operates through Inspection and Heat Treating (IHT) and Mechanical Services (MS) segments. The IHT segment offers non-destructive evaluation and testing, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, and eddy current testing services. This segment also provides long-range guided ultrasonic, phased array ultrasonic testing, terminals and storage inspection and management program, rope access, mechanical and pipeline integrity, and heat treating services. The MS segment offers engineered composite repair, emissions control/compliance, hot tapping, valve insertion, field machining, bolted joint integrity, vapor barrier plug and weld testing, and valve management services, as well as leak repair services. Team, Inc. was founded in 1973 and is headquartered in Sugar Land, Texas.