Financial Review: Mistras Group (NYSE:MG) versus SiTime (NASDAQ:SITM)

SiTime (NASDAQ:SITM) and Mistras Group (NYSE:MG) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

SiTime has a beta of 2.91, meaning that its stock price is 191% more volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiTime	-6.38%	0.53%	0.47%
Mistras Group	3.06%	13.60%	5.35%

Institutional & Insider Ownership

84.3% of SiTime shares are held by institutional investors. Comparatively, 74.9% of Mistras Group shares are held by institutional investors. 1.4% of SiTime shares are held by company insiders. Comparatively, 7.1% of Mistras Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares SiTime and Mistras Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$326.66 million	62.56	-$42.90 million	($1.01)	-766.40
Mistras Group	$724.02 million	0.75	$16.84 million	$0.70	24.25

Mistras Group has higher revenue and earnings than SiTime. SiTime 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 current recommendations and price targets for SiTime and Mistras Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	1	0	8	0	2.78
Mistras Group	0	2	1	0	2.33

SiTime presently has a consensus target price of $661.88, suggesting a potential downside of 14.49%. Mistras Group has a consensus target price of $19.00, suggesting a potential upside of 11.92%. Given Mistras Group’s higher probable upside, analysts clearly believe Mistras Group is more favorable than SiTime.

Summary

Mistras Group beats SiTime on 9 of the 14 factors compared between the two stocks.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

About Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.