Mayville Engineering (NYSE:MEC) versus VSE (NASDAQ:VSEC) Head-To-Head Comparison

Mayville Engineering (NYSE:MEC) and VSE (NASDAQ:VSEC) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares Mayville Engineering and VSE’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%
VSE	1.94%	7.25%	4.14%

Analyst Recommendations

This is a breakdown of current recommendations for Mayville Engineering and VSE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	0	3	1	3.25
VSE	0	0	4	0	3.00

Mayville Engineering currently has a consensus price target of $20.67, suggesting a potential upside of 45.24%. VSE has a consensus price target of $145.00, suggesting a potential downside of 11.86%. Given Mayville Engineering’s stronger consensus rating and higher probable upside, analysts plainly believe Mayville Engineering is more favorable than VSE.

Institutional & Insider Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. Comparatively, 91.5% of VSE shares are owned by institutional investors. 7.2% of Mayville Engineering shares are owned by insiders. Comparatively, 14.6% of VSE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Mayville Engineering and VSE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$581.60 million	0.50	$25.97 million	$0.85	16.74
VSE	$1.25 billion	2.71	$15.32 million	$1.12	146.88

Mayville Engineering has higher earnings, but lower revenue than VSE. Mayville Engineering is trading at a lower price-to-earnings ratio than VSE, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Mayville Engineering has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, VSE has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Summary

VSE beats Mayville Engineering on 8 of the 15 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 VSE

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, supply chain support, and other services to support the commercial aftermarket medium- and heavy-duty truck market. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.