Contrasting Team (NYSE:TISI) & Limbach (NASDAQ:LMB)

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

Profitability

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

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

Volatility & Risk

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

Insider & Institutional Ownership

46.6% of Team shares are held by institutional investors. Comparatively, 55.9% of Limbach shares are held by institutional investors. 3.7% of Team shares are held by insiders. Comparatively, 10.2% of Limbach shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Team	$851.33 million	0.10	-$38.27 million	($11.37)	-1.63
Limbach	$518.78 million	3.32	$30.88 million	$2.79	53.14

Limbach has lower revenue, but higher earnings 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.

Analyst Recommendations

This is a breakdown of recent ratings for Team and Limbach, as reported by MarketBeat.

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

Limbach has a consensus target price of $129.00, indicating a potential downside of 12.99%. Given Limbach’s stronger consensus rating and higher possible upside, analysts plainly believe Limbach is more favorable than Team.

Summary

Limbach beats Team on 12 of the 14 factors compared between the two stocks.

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.

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.