KBR (NYSE:KBR) versus Mayville Engineering (NYSE:MEC) Financial Contrast

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

Analyst Ratings

This is a summary of recent recommendations for Mayville Engineering and KBR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	1	4	1	3.00
KBR	0	7	5	0	2.42

Mayville Engineering presently has a consensus target price of $21.50, suggesting a potential upside of 17.94%. KBR has a consensus target price of $59.09, suggesting a potential upside of 38.91%. Given KBR’s higher probable upside, analysts clearly believe KBR is more favorable than Mayville Engineering.

Volatility & Risk

Mayville Engineering has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, KBR has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mayville Engineering and KBR”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$581.60 million	0.64	$25.97 million	$0.58	31.43
KBR	$7.74 billion	0.70	$375.00 million	$2.91	14.62

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

Institutional and Insider Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. Comparatively, 97.0% of KBR shares are owned by institutional investors. 7.2% of Mayville Engineering shares are owned by insiders. Comparatively, 1.1% of KBR shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mayville Engineering	2.29%	5.88%	3.06%
KBR	4.71%	35.14%	7.63%

Summary

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

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.

About KBR

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to the defense, renewable energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. This segment also provides synergistic services, including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions; high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization; and digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.