Critical Contrast: Chiyoda (OTCMKTS:CHYCY) and Mayville Engineering (NYSE:MEC)

Chiyoda (OTCMKTS:CHYCY) and Mayville Engineering (NYSE:MEC) are both small-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Insider & Institutional Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. 7.2% of Mayville Engineering shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Chiyoda and Mayville Engineering, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiyoda	0	0	0	0	0.00
Mayville Engineering	0	0	3	1	3.25

Mayville Engineering has a consensus target price of $20.67, suggesting a potential upside of 43.82%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, analysts clearly believe Mayville Engineering is more favorable than Chiyoda.

Profitability

This table compares Chiyoda and Mayville Engineering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chiyoda	6.83%	127.16%	6.60%
Mayville Engineering	3.41%	8.21%	4.52%

Risk and Volatility

Chiyoda has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Mayville Engineering has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Chiyoda and Mayville Engineering”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiyoda	$3.00 billion	0.17	$178.11 million	$0.29	6.72
Mayville Engineering	$524.61 million	0.56	$25.97 million	$0.85	16.91

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

Summary

Mayville Engineering beats Chiyoda on 10 of the 15 factors compared between the two stocks.

About Chiyoda

Chiyoda Corporation engages in the integrated engineering business in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.

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.