Analyzing American Power Group (OTCMKTS:APGI) & Ameresco (NYSE:AMRC)

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

Insider & Institutional Ownership

99.2% of Ameresco shares are owned by institutional investors. 45.1% of Ameresco shares are owned by company insiders. Comparatively, 75.8% of American Power Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ameresco and American Power Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameresco	1	5	7	0	2.46
American Power Group	0	0	0	0	0.00

Ameresco currently has a consensus price target of $42.56, suggesting a potential upside of 57.32%. Given Ameresco’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ameresco is more favorable than American Power Group.

Volatility & Risk

Ameresco has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500. Comparatively, American Power Group has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Ameresco and American Power Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameresco	1.59%	3.33%	0.82%
American Power Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Ameresco and American Power Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameresco	$1.98 billion	0.72	$44.28 million	$0.58	46.64
American Power Group	$2.13 million	6.11	-$1.71 million	N/A	N/A

Ameresco has higher revenue and earnings than American Power Group.

Summary

Ameresco beats American Power Group on 10 of the 12 factors compared between the two stocks.

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.

About American Power Group

American Power Group Corporation provides patented dual fuel conversion system for primary and back-up diesel generators, and mid-to heavy-duty vehicular diesel engines in North America and internationally. It operates through two segments, Dual Fuel Conversion Operations and Natural Gas Liquids Operations. The company's dual fuel conversion system is a fuel delivery enhancement system that converts existing diesel engines into engines, which run on diesel fuel and compressed natural gas or liquefied natural gas; diesel fuel and pipeline gas, well-head gas, or approved bio-methane; and diesel. It also provides flare capture and recovery services to oil and gas production companies. The company was formerly known as GreenMan Technologies, Inc. and changed its name to American Power Group Corporation in August 2012. American Power Group Corporation was founded in 1992 and is headquartered in Algona, Iowa.