Critical Review: SKK (NASDAQ:SKK) versus Mayville Engineering (NYSE:MEC)

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

Valuation & Earnings

This table compares Mayville Engineering and SKK”s top-line 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	31.82
SKK	$11.30 million	0.58	$440,000.00	N/A	N/A

Mayville Engineering has higher revenue and earnings than SKK.

Risk & Volatility

Mayville Engineering has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, SKK has a beta of -0.97, indicating that its stock price is 197% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Mayville Engineering and SKK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	3	3	0	2.50
SKK	1	0	0	0	1.00

Mayville Engineering presently has a consensus target price of $22.00, suggesting a potential upside of 19.22%. Given Mayville Engineering’s stronger consensus rating and higher probable upside, analysts clearly believe Mayville Engineering is more favorable than SKK.

Institutional and Insider Ownership

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

Profitability

This table compares Mayville Engineering and SKK’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%
SKK	N/A	N/A	N/A

Summary

Mayville Engineering beats SKK on 12 of the 12 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 SKK

SKK Holdings Limited, through its subsidiaries, provides civil engineering services in Singapore. It undertakes subsurface utility works, such as power and telecommunication cable laying works, water pipeline works, and sewer rehabilitation works. The company also offers gas pipeline and sewer construction works; and underground piping, underground utility infrastructure construction and maintenance, horizontal directional drilling, and plumbing and sanitary works. It serves government authorities, utility companies, or contractors. The company was founded in 2013 and is headquartered in Singapore.