Analyzing Mistras Group (MG) and VSE (VSEC)

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

Analyst Ratings

This is a breakdown of recent ratings for Mistras Group and VSE, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mistras Group 2 4 1 0 1.86
VSE 0 0 0 0 N/A

Mistras Group presently has a consensus price target of $27.25, indicating a potential upside of 44.33%. Given Mistras Group’s higher probable upside, research analysts plainly believe Mistras Group is more favorable than VSE.

Earnings and Valuation

This table compares Mistras Group and VSE’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mistras Group $700.97 million 0.76 -$2.17 million $0.43 43.91
VSE $760.11 million 0.68 $39.09 million N/A N/A

VSE has higher revenue and earnings than Mistras Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Mistras Group -0.13% 5.10% 2.67%
VSE 5.25% 9.88% 4.53%

Institutional & Insider Ownership

61.8% of Mistras Group shares are owned by institutional investors. Comparatively, 71.5% of VSE shares are owned by institutional investors. 43.5% of Mistras Group shares are owned by company insiders. Comparatively, 20.9% of VSE shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

VSE pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Mistras Group does not pay a dividend.

Risk and Volatility

Mistras Group has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, VSE has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Summary

VSE beats Mistras Group on 8 of the 13 factors compared between the two stocks.

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.

About VSE

VSE Corporation operates as a diversified services and supply company in the United States. The company operates through three segments: Supply Chain Management Group, Aviation Group, and Federal Services Group. The Supply Chain Management Group segment offers sourcing, acquisition, scheduling, transportation, shipping, logistics, data management, and other services to assist its clients with supply chain management. This segment supplies vehicle parts and mission critical supply chain support to the United States Postal Service (USPS) vehicle fleet and commercial truck fleets; and fleet management and sustainment solutions, and managed inventory services to the Department of Defense. The Aviation Group segment provides maintenance, repair, and overhaul (MRO) services; and parts supply and distribution for general aviation jet aircraft engines and engine accessories. This segment serves corporate and private aircraft owners, regional airlines, aviation manufacturers, aviation MRO providers, cargo transporters, and agricultural clients. The Federal Services Group segment offers foreign military sales services and refurbishment services to extend and enhance the life of existing vehicles and equipment; fleet-wide ship and aircraft support; aircraft sustainment and maintenance; and foreign military sales and other technical, management, engineering, logistics, maintenance, configuration management, prototyping, technology, and field support services to the U.S. Navy and Marine Corps, U.S. Army and Army Reserve, U.S. Air Force, and other U.S. and foreign military customers. This segment also provides IT and technical and consulting services primarily to the United States Department of Defense and other government agencies. VSE Corporation was founded in 1959 and is headquartered in Alexandria, Virginia.

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