Paychex (NASDAQ:PAYX) and Mistras Group (NYSE:MG) Critical Comparison

Paychex (NASDAQ:PAYX – Get Free Report) and Mistras Group (NYSE:MG – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Volatility & Risk

Paychex has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares Paychex and Mistras Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paychex $6.60 billion 6.29 $1.76 billion $5.04 23.17
Mistras Group $748.24 million 0.86 $16.84 million $0.63 32.10

Paychex has higher revenue and earnings than Mistras Group. Paychex is trading at a lower price-to-earnings ratio than Mistras Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

83.5% of Paychex shares are owned by institutional investors. Comparatively, 74.9% of Mistras Group shares are owned by institutional investors. 0.6% of Paychex shares are owned by insiders. Comparatively, 7.1% of Mistras Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Paychex 27.35% 52.78% 12.29%
Mistras Group 2.78% 13.01% 5.34%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Paychex and Mistras Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paychex 2 13 1 1 2.06
Mistras Group 0 2 1 0 2.33

Paychex presently has a consensus target price of $115.93, suggesting a potential downside of 0.70%. Mistras Group has a consensus target price of $18.18, suggesting a potential downside of 10.11%. Given Paychex’s higher probable upside, research analysts clearly believe Paychex is more favorable than Mistras Group.

Summary

Paychex beats Mistras Group on 10 of the 14 factors compared between the two stocks.

About Paychex

(Get Free Report)

Paychex, Inc. provides payroll, human resources and employee benefits solutions to businesses of varying sizes. Its services include payroll processing, tax administration, time and attendance tools, HR support, employee benefits, retirement services and business insurance. The company also offers professional employer organization services, which let businesses outsource certain employment responsibilities, as well as technology for workforce management, recruiting and compliance. Paychex primarily serves employers in the United States and supports businesses with international workforce needs.

About Mistras Group

(Get Free Report)

Mistras Group provides asset protection and integrity services to companies that operate industrial facilities and infrastructure. Its work includes nondestructive testing and inspection, engineering and consulting, and monitoring systems designed to help customers assess asset condition, identify potential problems and support safe, reliable operations. The company serves industries including energy, aerospace, manufacturing and infrastructure. Its services and technologies are used to inspect and monitor assets such as pipelines, power-generation facilities, aircraft and bridges.

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