Critical Survey: Montrose Environmental Group (NYSE:MEG) versus GlyEco (OTCMKTS:GLYE)

Montrose Environmental Group (NYSE:MEG) and GlyEco (OTCMKTS:GLYE) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Earnings and Valuation

This table compares Montrose Environmental Group and GlyEco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montrose Environmental Group	$780.12 million	1.23	-$62.31 million	($1.51)	-18.03
GlyEco	N/A	N/A	N/A	N/A	N/A

GlyEco has lower revenue, but higher earnings than Montrose Environmental Group.

Profitability

This table compares Montrose Environmental Group and GlyEco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Montrose Environmental Group	-5.10%	0.46%	0.21%
GlyEco	N/A	N/A	N/A

Insider and Institutional Ownership

87.9% of Montrose Environmental Group shares are owned by institutional investors. 11.2% of Montrose Environmental Group shares are owned by insiders. Comparatively, 22.7% of GlyEco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Montrose Environmental Group and GlyEco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montrose Environmental Group	1	3	4	0	2.38
GlyEco	0	0	0	0	0.00

Montrose Environmental Group presently has a consensus target price of $33.17, indicating a potential upside of 21.86%. Given Montrose Environmental Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Montrose Environmental Group is more favorable than GlyEco.

Summary

Montrose Environmental Group beats GlyEco on 7 of the 9 factors compared between the two stocks.

About Montrose Environmental Group

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.

About GlyEco

GlyEco, Inc. engages in the development and manufacture of coolants, additives and related performance fluids. Its products and services include additives, ethylene glycol and antifreeze. The company was founded by Janet Carnell Lorenz, John Darc Lorenz, II and Todd L. Smith on April 21, 1997 and is headquartered in Rock Hill, SC.