China Advanced Constructn Mtrls Grp (NASDAQ:CADC) and Limbach (NASDAQ:LMB) are both small-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares China Advanced Constructn Mtrls Grp and Limbach’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Advanced Constructn Mtrls Grp $45.05 million 0.34 -$11.03 million N/A N/A
Limbach $485.74 million 0.06 $710,000.00 $0.22 18.45

Limbach has higher revenue and earnings than China Advanced Constructn Mtrls Grp.

Profitability

This table compares China Advanced Constructn Mtrls Grp and Limbach’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Advanced Constructn Mtrls Grp 1.33% 5.33% 0.86%
Limbach -0.78% -5.30% -1.06%

Insider & Institutional Ownership

0.7% of China Advanced Constructn Mtrls Grp shares are owned by institutional investors. Comparatively, 38.1% of Limbach shares are owned by institutional investors. 38.9% of China Advanced Constructn Mtrls Grp shares are owned by company insiders. Comparatively, 47.9% of Limbach shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

China Advanced Constructn Mtrls Grp has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Limbach has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for China Advanced Constructn Mtrls Grp and Limbach, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Advanced Constructn Mtrls Grp 0 0 0 0 N/A
Limbach 0 1 1 0 2.50

Limbach has a consensus price target of $6.50, suggesting a potential upside of 60.10%. Given Limbach’s higher probable upside, analysts clearly believe Limbach is more favorable than China Advanced Constructn Mtrls Grp.

Summary

Limbach beats China Advanced Constructn Mtrls Grp on 7 of the 12 factors compared between the two stocks.

About China Advanced Constructn Mtrls Grp

China Advanced Construction Materials Group, Inc., through its subsidiaries, produces and sells construction materials for large scale infrastructure, commercial, and residential developments primarily in the People's Republic of China. Its products include ready-mixed concrete blends, controlled low-strength materials, high-strength concrete products with customized fibers, and soil cement and foundation concrete products; and compound admixture concrete, lightweight aggregate concrete, thermostat concrete, and C100 high performance concrete products. The company sells its concrete products primarily to local construction companies. Its target customers include general contractors, developers, design engineers, architects, and homebuilders. The company was founded in 2002 and is based in Beijing, the People's Republic of China. As of May 16, 2018, China Advanced Construction Materials Group, Inc. operates as a subsidiary of Hou Sing International Business Limited.

About Limbach

Limbach Holdings, Inc. provides commercial specialty contract services in the United States. It operates in two segments, Construction and Service. The company provides services in the areas of heating, ventilation, air-conditioning (HVAC), plumbing, electrical, and building controls for the design and construction of new and renovated buildings; maintenance services; and equipment upgrades. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefab construction, and sustainable building solutions and practices. The company's customers include healthcare facilities; education, including schools and universities; sports and amusement, such as sports arenas and related facilities; transportation, including passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; corporate and commercial office buildings; retail and mixed use; residential multifamily apartment buildings; mission critical facilities, including data centers; and industrial manufacturing. It serves customers primarily located in Florida, California, Massachusetts, New Jersey, Pennsylvania, Delaware, Maryland, Washington DC, Virginia, West Virginia, Ohio and Michigan. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

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