Head-To-Head Contrast: Diversified Energy (NYSE:DEC) versus Ameresco (NYSE:AMRC)

Diversified Energy (NYSE:DEC) and Ameresco (NYSE:AMRC) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Diversified Energy and Ameresco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversified Energy	N/A	N/A	N/A
Ameresco	2.97%	6.32%	1.55%

Earnings & Valuation

This table compares Diversified Energy and Ameresco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$794.84 million	0.92	-$88.27 million	N/A	N/A
Ameresco	$1.82 billion	0.54	$56.76 million	$1.02	18.26

Ameresco has higher revenue and earnings than Diversified Energy.

Risk and Volatility

Diversified Energy has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Ameresco has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Diversified Energy and Ameresco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	0	4	0	3.00
Ameresco	1	3	3	0	2.29

Diversified Energy currently has a consensus price target of $20.75, indicating a potential upside of 37.12%. Ameresco has a consensus price target of $20.67, indicating a potential upside of 10.95%. Given Diversified Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Diversified Energy is more favorable than Ameresco.

Institutional and Insider Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 99.2% of Ameresco shares are owned by institutional investors. 42.0% of Ameresco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Ameresco beats Diversified Energy on 8 of the 12 factors compared between the two stocks.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.

About Ameresco

Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, Europe, and internationally. It operates through U.S. Regions, U.S. Federal, Canada, Europe, Alternative Fuels, and All Other segments. The company offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities; and projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems. In addition, the company offers renewable energy solutions and services, such as the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy. Further, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting, and enterprise energy management services; and operates wind farms. It serves the federal, state, local governments, healthcare and educational institutions, airports, public housing authorities and public universities, municipal utilities, and commercial and industrial customers. As of December 31, 2023, the company owned and operated 185 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was incorporated in 2000 and is headquartered in Framingham, Massachusetts.