Reviewing Mistras Group (NYSE:MG) and Genpact (NYSE:G)

Genpact (NYSE:G) and Mistras Group (NYSE:MG) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genpact	11.04%	23.02%	10.57%
Mistras Group	2.78%	13.01%	5.34%

Risk and Volatility

Genpact has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

96.0% of Genpact shares are held by institutional investors. Comparatively, 74.9% of Mistras Group shares are held by institutional investors. 1.6% of Genpact shares are held by insiders. Comparatively, 7.1% of Mistras Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Genpact and Mistras Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genpact	$5.08 billion	1.44	$552.49 million	$3.43	12.73
Mistras Group	$724.02 million	0.89	$16.84 million	$0.63	32.07

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genpact	0	7	2	0	2.22
Mistras Group	0	2	1	0	2.33

Genpact presently has a consensus target price of $41.89, indicating a potential downside of 4.07%. Mistras Group has a consensus target price of $18.18, indicating a potential downside of 10.06%. Given Genpact’s higher possible upside, analysts clearly believe Genpact is more favorable than Mistras Group.

Summary

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

About Genpact

Genpact is a global professional services company that helps businesses improve operations and pursue digital transformation. Its services include business process management, consulting, data and analytics, artificial intelligence, and technology implementation. The company works with clients across industries such as banking and financial services, insurance, consumer goods, healthcare, life sciences, manufacturing, and technology. It serves organizations around the world through its global operations.

About Mistras Group

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.