Concrete Pumping (NASDAQ:BBCP) vs. Montrose Environmental Group (NYSE:MEG) Financial Analysis

Concrete Pumping (NASDAQ:BBCP) and Montrose Environmental Group (NYSE:MEG) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Valuation and Earnings

This table compares Concrete Pumping and Montrose Environmental Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concrete Pumping	$392.87 million	0.98	$6.37 million	$0.09	84.33
Montrose Environmental Group	$830.54 million	0.99	-$840,000.00	($0.24)	-94.37

Concrete Pumping has higher earnings, but lower revenue than Montrose Environmental Group. Montrose Environmental Group is trading at a lower price-to-earnings ratio than Concrete Pumping, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

34.2% of Concrete Pumping shares are held by institutional investors. Comparatively, 87.9% of Montrose Environmental Group shares are held by institutional investors. 28.2% of Concrete Pumping shares are held by insiders. Comparatively, 11.9% of Montrose Environmental Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Concrete Pumping has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500.

Profitability

This table compares Concrete Pumping and Montrose Environmental Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Concrete Pumping	1.65%	2.50%	0.74%
Montrose Environmental Group	-0.10%	4.47%	2.06%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Concrete Pumping and Montrose Environmental Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concrete Pumping	0	3	1	0	2.25
Montrose Environmental Group	1	2	2	0	2.20

Concrete Pumping currently has a consensus price target of $8.25, suggesting a potential upside of 8.70%. Montrose Environmental Group has a consensus price target of $34.67, suggesting a potential upside of 53.06%. Given Montrose Environmental Group’s higher possible upside, analysts plainly believe Montrose Environmental Group is more favorable than Concrete Pumping.

Summary

Montrose Environmental Group beats Concrete Pumping on 8 of the 14 factors compared between the two stocks.

About Concrete Pumping

Concrete Pumping Holdings, Inc. provides concrete pumping and waste management services in the United States and the United Kingdom. The company offers concrete pumping services to general contractors and concrete finishing companies in the commercial, infrastructure, and residential sectors under the Brundage-Bone and Capital Pumping brands; and industrial cleanup and containment services primarily to customers in the construction industry under the Eco-Pan brand. It leases and rents concrete pumping equipment, pans, and containers. As of October 31, 2023, the company owned a fleet of approximately 930 boom pumps, 90 placing booms, 20 telebelts, 300 stationary pumps, and 115 waste management trucks. Concrete Pumping Holdings, Inc. was founded in 1983 and is headquartered in Thornton, Colorado.

About Montrose Environmental Group

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.