Financial Analysis: Mayville Engineering (NYSE:MEC) vs. Kaiser Group (OTCMKTS:KGHI)

Mayville Engineering (NYSE:MEC) and Kaiser Group (OTCMKTS:KGHI) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Mayville Engineering and Kaiser Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$581.60 million	0.47	$25.97 million	$0.85	15.92
Kaiser Group	N/A	N/A	N/A	N/A	N/A

Mayville Engineering has higher revenue and earnings than Kaiser Group.

Profitability

This table compares Mayville Engineering and Kaiser Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mayville Engineering	3.41%	8.21%	4.52%
Kaiser Group	N/A	N/A	N/A

Insider & Institutional Ownership

45.4% of Mayville Engineering shares are held by institutional investors. 7.2% of Mayville Engineering shares are held by company insiders. Comparatively, 13.8% of Kaiser Group shares are held 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mayville Engineering and Kaiser Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	2	2	0	2.50
Kaiser Group	0	0	0	0	0.00

Mayville Engineering currently has a consensus price target of $21.3333, indicating a potential upside of 57.60%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, research analysts plainly believe Mayville Engineering is more favorable than Kaiser Group.

Summary

Mayville Engineering beats Kaiser Group on 8 of the 9 factors compared between the two stocks.

About Mayville Engineering

Mayville Engineering Company, Inc., together with its subsidiaries, engages in the production, design, prototyping and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components in the United States. It also supplies engineered components to original equipment manufacturers. The company serves heavy and medium duty commercial vehicles, construction and access equipment, powersports, agriculture, military, and other end markets. Mayville Engineering Company, Inc. was founded in 1945 and is headquartered in Milwaukee, Wisconsin.

About Kaiser Group

Kaiser Group Holdings, Inc., through its subsidiary, Kaiser Aircraft Industries, Inc., provides aircraft maintenance and modification services for government, military, and commercial customers. It also manufactures and assemblies parts and kits. The company was founded in 1969 and is headquartered in Birmingham, Alabama.