TSS (NASDAQ:TSSI) & Mayville Engineering (NYSE:MEC) Critical Comparison

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TSS	$148.00 million	4.24	$5.98 million	$0.36	69.75
Mayville Engineering	$581.60 million	0.58	$25.97 million	$1.08	15.38

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

Institutional & Insider Ownership

45.4% of Mayville Engineering shares are held by institutional investors. 18.9% of TSS shares are held by company insiders. Comparatively, 7.2% of Mayville Engineering shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TSS	3.87%	121.89%	11.68%
Mayville Engineering	4.09%	9.30%	4.93%

Risk and Volatility

TSS has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Mayville Engineering has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for TSS and Mayville Engineering, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TSS	0	0	0	0	0.00
Mayville Engineering	0	2	2	0	2.50

Mayville Engineering has a consensus target price of $21.33, indicating a potential upside of 28.48%. Given Mayville Engineering’s stronger consensus rating and higher probable upside, analysts plainly believe Mayville Engineering is more favorable than TSS.

Summary

Mayville Engineering beats TSS on 8 of the 14 factors compared between the two stocks.

About TSS

TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.

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.