Financial Review: Mistras Group (MG) vs. Engility (EGL)

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

Institutional & Insider Ownership

How to Become a New Pot Stock Millionaire

61.6% of Mistras Group shares are owned by institutional investors. Comparatively, 95.1% of Engility shares are owned by institutional investors. 43.5% of Mistras Group shares are owned by insiders. Comparatively, 0.6% of Engility shares are owned by 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.

Volatility and Risk

Mistras Group has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Engility has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Mistras Group and Engility, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mistras Group 1 5 0 0 1.83
Engility 1 4 4 0 2.33

Mistras Group currently has a consensus price target of $31.20, suggesting a potential upside of 50.80%. Engility has a consensus price target of $34.00, suggesting a potential upside of 28.59%. Given Mistras Group’s higher probable upside, equities analysts clearly believe Mistras Group is more favorable than Engility.

Profitability

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

Net Margins Return on Equity Return on Assets
Mistras Group -0.31% 4.97% 2.70%
Engility -1.82% 12.16% 4.10%

Valuation and Earnings

This table compares Mistras Group and Engility’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mistras Group $700.97 million 0.84 -$2.17 million $0.43 48.12
Engility $1.93 billion 0.50 -$35.19 million $2.33 11.35

Mistras Group has higher earnings, but lower revenue than Engility. Engility 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

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

Mistras Group Company Profile

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.

Engility Company Profile

Engility Holdings, Inc., together with its subsidiaries, provides a range of technical services to the U.S. Department of Defense, U.S. Department of Justice, U.S. Department of State, Federal Aviation Administration, Department of Homeland Security, and space-related and intelligence community agencies. It offers systems engineering and integration services, including engineering and technology lifecycle support, information assurance, modeling and simulation, and architecture analysis and modernization; and cybersecurity services, such as vulnerability assessments and penetration testing, independent test and evaluation, cybersecurity systems engineering, cyber quick reaction range capability, and cyber hunting. The company also provides high performance computing services comprising architecture and infrastructure design, data management and analytics, and integration and testing, as well as systems operation, optimization, and sustainment; and enterprise modernization services, which include architecture analysis and modernization, information technology services and solutions, and software development and integration. In addition, it offers mission and operations support solutions in the areas of artificial intelligence, space launch and space flight, law enforcement, intelligence analysis, air traffic management, engineering and fabrication, and communication data exchange; and readiness and training solutions, including training development, learning, and knowledge management. The company was incorporated in 2012 and is based in Chantilly, Virginia. Engility Holdings, Inc. is a subsidiary of Birch Partners, LP.

Receive News & Ratings for Mistras Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mistras Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply