Financial Analysis: Mistras Group (MG) versus Huron Consulting Group (HURN)

Huron Consulting Group (NASDAQ: HURN) and Mistras Group (NYSE:MG) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

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This is a breakdown of current ratings and price targets for Huron Consulting Group and Mistras Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huron Consulting Group 0 2 2 0 2.50
Mistras Group 1 5 0 0 1.83

Huron Consulting Group currently has a consensus price target of $48.00, suggesting a potential upside of 25.00%. Mistras Group has a consensus price target of $31.20, suggesting a potential upside of 59.35%. Given Mistras Group’s higher probable upside, analysts plainly believe Mistras Group is more favorable than Huron Consulting Group.

Institutional & Insider Ownership

94.0% of Huron Consulting Group shares are held by institutional investors. Comparatively, 62.7% of Mistras Group shares are held by institutional investors. 2.7% of Huron Consulting Group shares are held by company insiders. Comparatively, 44.7% of Mistras Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Huron Consulting Group and Mistras Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huron Consulting Group -21.06% 8.43% 4.14%
Mistras Group -0.31% 4.97% 2.70%

Volatility and Risk

Huron Consulting Group has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Mistras Group has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares Huron Consulting Group and Mistras Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huron Consulting Group $807.74 million 1.07 -$170.11 million $2.15 17.86
Mistras Group $700.97 million 0.79 -$2.17 million $0.43 45.53

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

Summary

Huron Consulting Group beats Mistras Group on 8 of the 14 factors compared between the two stocks.

About Huron Consulting Group

Huron Consulting Group Inc., a professional services firm, provides advisory, technology, and analytic solutions in the United States and internationally. Its Healthcare segment provides advisory services in the areas of strategy, care transformation, financial and operational performance, technology and analytics, and leadership development to national and regional hospitals, integrated health systems, academic medical centers, community hospitals, and medical groups. The company's Education segment offers management consulting and technology solutions related to business and technology strategy, financial management, operational and organizational effectiveness, research administration, and regulatory compliance for higher education institutions and academic medical centers. Its Business Advisory segment provides enterprise performance management, enterprise resource planning, business intelligence and analytics, customer relationship management, and data management services; and capital advisory, transaction advisory, operational improvement, restructuring and turnaround, valuation, and dispute advisory services. This segment also provides strategic solutions in the areas of R&D and product strategy commercial segmentation, corporate and financial strategy, compliance and operations, reimbursement and access strategy, commercial contracting strategy, fair market value analysis, lifecycle management, litigation and investigations, government pricing and transparency reporting, auditing and monitoring, and business process improvement. The company serves healthcare, education, pharmaceutical and medical device, financial services, energy and utilities, retail, aerospace, automotive, technology, telecommunications, consumer products, governmental, metals and mining, engineering and construction, hospitality and gaming, logistics, and manufacturing industries. Huron Consulting Group Inc. was founded in 2002 and is headquartered in Chicago, Illinois.

About Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions worldwide. The company operates through three segments: Services, International, and Products and Systems. It offers traditional non-destructive testing, and inspection and engineering services; and designs, manufactures, sells, installs, and services acoustic emission (AE) sensors, instruments, and turn-key systems used for monitoring and testing materials, pressure components, processes, and structures. The company also offers leak monitoring and detection systems to detect and locate gaseous and liquid leaks in valves, vessels, pipelines, boilers, and tanks; ultrasonic equipment; and digital radiographic systems to solve specific industrial problems. In addition, it provides technology solutions, such as Acoustic Combustion Turbine Monitoring System, an online system to detect stator blade cracks in gas turbines; TANKPAC for tank inspections; POWERPAC for monitoring discharges in critical power grid transformers; and AMS boiler tube leak detection and location monitoring systems. Further, the company offers Plant Condition Monitoring Software and Systems, an enterprise software that allows its customers to collect, store, and analyze data; Advanced Data Analysis Pattern Recognition and Neural Networks Software, which enables AE experts to develop automated remote monitoring systems; and Loose Parts Monitoring Software program to monitor, detect, and evaluate metallic loose parts in nuclear reactor coolant systems. Additionally, it provides professional engineering and consulting, and online monitoring services. The company serves oil and gas, aerospace and defense, power generation, public infrastructure, chemicals, transportation, primary metals and metalworking, pharmaceutical/biotechnology, and food processing industries, as well as research and engineering institutions. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.

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