Reviewing Mobile Mini (MINI) and McDermott International (MDR)

Mobile Mini (NASDAQ: MINI) and McDermott International (NYSE:MDR) are both small-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Dividends

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Mobile Mini pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. McDermott International does not pay a dividend. Mobile Mini pays out 86.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Mobile Mini has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, McDermott International has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Profitability

This table compares Mobile Mini and McDermott International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mobile Mini 22.91% 6.49% 2.51%
McDermott International 5.98% 10.68% 5.51%

Valuation & Earnings

This table compares Mobile Mini and McDermott International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mobile Mini $533.55 million 3.76 $122.22 million $1.16 38.75
McDermott International $2.98 billion 0.60 $178.54 million $0.64 9.81

McDermott International has higher revenue and earnings than Mobile Mini. McDermott International is trading at a lower price-to-earnings ratio than Mobile Mini, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mobile Mini and McDermott International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mobile Mini 0 4 3 0 2.43
McDermott International 1 4 5 0 2.40

Mobile Mini presently has a consensus target price of $45.17, indicating a potential upside of 0.48%. McDermott International has a consensus target price of $8.77, indicating a potential upside of 39.60%. Given McDermott International’s higher probable upside, analysts plainly believe McDermott International is more favorable than Mobile Mini.

Insider & Institutional Ownership

97.7% of McDermott International shares are held by institutional investors. 6.3% of Mobile Mini shares are held by company insiders. Comparatively, 1.3% of McDermott International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Mobile Mini Company Profile

Mobile Mini, Inc. provides portable storage and specialty containment solutions. It operates through three segments: Storage Solutions North America, Storage Solutions United Kingdom, and Tank and Pump Solutions. The company offers various portable storage and office products, such as steel storage containers and steel ground level offices serving retailers, construction companies, medical centers, schools, utilities, distributors, the military, hotels, restaurants, entertainment complexes, and households for use in a range of applications, including storage of construction materials and equipment, retail and manufacturing inventory, maintenance supplies, documents and records, and household goods. It also provides a range of specialty containment equipment comprising steel tanks, stainless steel tank trailers, and pumps and filtration equipment, as well as roll-off, vacuum, and dewatering boxes. In addition, the company offers specialty containment services consisting of transportation of containers for waste management; provision of waste management oversight and services; system design, including the assessment of pumping, filtration, and temporary storage needs; and field services to install and connect customer containment equipment. It primarily leases its specialty products for chemical, refinery, oil and natural gas drilling, mining, and environmental service customers. As of February 2, 2018, the company operated a rental fleet of approximately 215,000 storage solutions containers and office units; and 12,100 specialty containment units in the United State. Its network also consisted of 154 locations in the United States, the United Kingdom, and Canada. Mobile Mini, Inc. was founded in 1983 and is headquartered in Phoenix, Arizona.

McDermott International Company Profile

McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.

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