Financial Survey: Mayville Engineering (NYSE:MEC) vs. Babcock International Group (OTCMKTS:BCKIY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mayville Engineering	3.41%	8.21%	4.52%
Babcock International Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Mayville Engineering and Babcock International Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$581.60 million	0.50	$25.97 million	$0.85	16.74
Babcock International Group	$6.16 billion	1.30	$315.25 million	N/A	N/A

Babcock International Group has higher revenue and earnings than Mayville Engineering.

Risk & Volatility

Mayville Engineering has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Babcock International Group has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Institutional & Insider Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. 7.2% of Mayville Engineering shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Mayville Engineering and Babcock International Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	0	3	1	3.25
Babcock International Group	0	0	0	1	4.00

Mayville Engineering presently has a consensus price target of $20.67, suggesting a potential upside of 45.24%. Given Mayville Engineering’s higher possible upside, equities research analysts plainly believe Mayville Engineering is more favorable than Babcock International Group.

Summary

Mayville Engineering beats Babcock International Group on 7 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 Babcock International Group

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment. The company also offers naval architecture, engineering, and project management services; submarines and complex engineering services in support of various decommissioning programs and projects, training and operation support, new build program management, and design and installation; critical vehicle fleet management, and equipment support and training services for military and civil customers; and designs, assesses, manufactures, installs, maintains, and decommissions vehicles for police, fire and ambulance, civil service, military, and other security-focused organizations. In addition, it provides plain line track renewal services; and engineering services for track projects, signaling, telecommunications, and on-track plants. Further, the company offers critical engineering services to defense and civil customers, including pilot training, equipment support, and airbase management, as well as operates aviation fleets that provide delivering emergency services. The company was founded in 1891 and is headquartered in London, the United Kingdom.