Critical Survey: Mistras Group (NYSE:MG) and Osram Licht (OTCMKTS:OSAGF)

Osram Licht (OTCMKTS:OSAGF) and Mistras Group (NYSE:MG) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

74.9% of Mistras Group shares are held by institutional investors. 12.3% of Mistras Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Osram Licht has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares Osram Licht and Mistras Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Osram Licht	-3.76%	6.11%	0.96%
Mistras Group	2.33%	12.77%	4.94%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Osram Licht and Mistras Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osram Licht	0	0	0	0	0.00
Mistras Group	0	1	0	1	3.00

Mistras Group has a consensus price target of $16.00, indicating a potential upside of 9.54%. Given Mistras Group’s stronger consensus rating and higher possible upside, analysts clearly believe Mistras Group is more favorable than Osram Licht.

Earnings and Valuation

This table compares Osram Licht and Mistras Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osram Licht	$3.76 billion	16.53	-$147.08 million	($1.42)	-43.82
Mistras Group	$724.02 million	0.64	$16.84 million	$0.53	27.56

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

Summary

Mistras Group beats Osram Licht on 12 of the 14 factors compared between the two stocks.

About Osram Licht

OSRAM Licht AG provides various lighting products and solutions worldwide. It operates through three segments: Opto Semiconductors, Automotive, and Digital. The company was formerly known as Kyros A AG and changed its name to OSRAM Licht AG in November 2012. OSRAM Licht AG was incorporated in 2012 and is headquartered in Munich, Germany. OSRAM Licht AG operates as a subsidiary of ams-OSRAM AG.

About Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.