Critical Contrast: Mayville Engineering (MEC) and Its Competitors

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

Risk & Volatility

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

Analyst Ratings

This is a summary of recent recommendations for Mayville Engineering and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	0	3	1	3.25
Mayville Engineering Competitors	48	526	1041	25	2.64

Mayville Engineering presently has a consensus price target of $20.67, suggesting a potential upside of 41.25%. As a group, “ENGINRG/R&D SVS” companies have a potential upside of 10.85%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, analysts plainly believe Mayville Engineering is more favorable than its peers.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Mayville Engineering	$581.60 million	$25.97 million	17.21
Mayville Engineering Competitors	$8.28 billion	$330.08 million	31.81

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.

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%	30.78%	7.17%

Insider and Institutional Ownership

45.4% of Mayville Engineering shares are held by institutional investors. Comparatively, 69.8% of shares of all “ENGINRG/R&D SVS” companies are held by institutional investors. 7.2% of Mayville Engineering shares are held by insiders. Comparatively, 5.9% of shares of all “ENGINRG/R&D SVS” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.