Critical Review: Mayville Engineering (MEC) and Its Peers

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 analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Valuation and Earnings

This table compares Mayville Engineering and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mayville Engineering	$581.60 million	$25.97 million	17.04
Mayville Engineering Competitors	$8.59 billion	$330.08 million	32.25

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.

Insider and Institutional Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. Comparatively, 69.8% of shares of all “ENGINRG/R&D SVS” companies are owned by institutional investors. 7.2% of Mayville Engineering shares are owned by company insiders. Comparatively, 5.9% of shares of all “ENGINRG/R&D SVS” companies are owned by company 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.

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%	32.24%	7.17%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mayville Engineering and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	0	3	1	3.25
Mayville Engineering Competitors	47	525	1040	25	2.64

Mayville Engineering currently has a consensus target price of $20.6667, indicating a potential upside of 42.65%. As a group, “ENGINRG/R&D SVS” companies have a potential upside of 10.17%. Given Mayville Engineering’s stronger consensus rating and higher probable upside, analysts clearly believe Mayville Engineering is more favorable than its peers.

Volatility and Risk

Mayville Engineering has a beta of 1.19, meaning that its stock 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 stock price is 26% more volatile than the S&P 500.

Summary

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

Mayville Engineering Company Profile

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.