Critical Analysis: Mayville Engineering (MEC) & Its Peers

Mayville Engineering (NYSE:MEC) is one of 25 public companies in the “ENGINRG/R&D SVS” industry, but how does it compare to its peers? We will compare Mayville Engineering to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Mayville Engineering and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	0	3	1	3.25
Mayville Engineering Competitors	47	524	1039	24	2.64

Mayville Engineering presently has a consensus target price of $20.6667, suggesting a potential upside of 46.82%. As a group, “ENGINRG/R&D SVS” companies have a potential upside of 12.43%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Mayville Engineering is more favorable than its peers.

Risk & Volatility

Mayville Engineering has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Mayville Engineering’s peers have a beta of 1.26, indicating that their average share price is 26% more volatile than the S&P 500.

Profitability

This table compares Mayville Engineering and its peers’ 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%
Mayville Engineering Competitors	6.89%	32.24%	7.17%

Institutional & Insider Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. Comparatively, 69.8% of shares of all “ENGINRG/R&D SVS” companies are owned by institutional investors. 7.2% of Mayville Engineering shares are owned by company insiders. Comparatively, 5.9% of shares of all “ENGINRG/R&D SVS” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Mayville Engineering and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mayville Engineering	$581.60 million	$25.97 million	16.56
Mayville Engineering Competitors	$8.30 billion	$330.08 million	31.41

Mayville Engineering’s peers have higher revenue and earnings than Mayville Engineering. Mayville Engineering is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Mayville Engineering peers beat Mayville Engineering on 8 of the 13 factors compared.

Mayville Engineering Company Profile

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.