Reviewing Mayville Engineering (NYSE:MEC) & Greenbrier Companies (NYSE:GBX)

Greenbrier Companies (NYSE:GBXGet Free Report) and Mayville Engineering (NYSE:MECGet Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Greenbrier Companies 4.07% 6.49% 2.55%
Mayville Engineering -2.95% -6.63% -2.99%

Analyst Ratings

This is a summary of current recommendations for Greenbrier Companies and Mayville Engineering, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greenbrier Companies 1 3 0 0 1.75
Mayville Engineering 1 1 4 0 2.50

Greenbrier Companies currently has a consensus target price of $45.00, suggesting a potential upside of 4.70%. Mayville Engineering has a consensus target price of $35.75, suggesting a potential upside of 80.88%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, analysts plainly believe Mayville Engineering is more favorable than Greenbrier Companies.

Insider and Institutional Ownership

95.6% of Greenbrier Companies shares are owned by institutional investors. Comparatively, 45.4% of Mayville Engineering shares are owned by institutional investors. 1.7% of Greenbrier Companies shares are owned by company insiders. Comparatively, 5.6% of Mayville Engineering shares are owned by company 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.

Earnings & Valuation

This table compares Greenbrier Companies and Mayville Engineering”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Greenbrier Companies $3.24 billion 0.41 $204.10 million $3.37 12.75
Mayville Engineering $546.49 million 0.92 -$8.11 million ($0.84) -23.53

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

Risk and Volatility

Greenbrier Companies has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Mayville Engineering has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Summary

Greenbrier Companies beats Mayville Engineering on 9 of the 14 factors compared between the two stocks.

About Greenbrier Companies

(Get Free Report)

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. It operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The Manufacturing segment offers covered hopper cars, gondolas, open top hoppers, boxcars, center partition cars, tank cars, sustainable conversions, double-stack railcars, auto-max ii, multi-max, and multi-max plus products, intermodal cars, automobile transport, coil steel and metals, flat cars, sliding wall cars, pressurized tank cars, and non-pressurized tank cars. The Maintenance Services segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and downsizing; operates a railcar repair, refurbishment, and maintenance network; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts. The Leasing & Management Services segment offers operating leases and per diem leases for a fleet of approximately 13,400 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management and logistics, administration, and railcar re-marketing. This segment provides management services for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. It serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon.

About Mayville Engineering

(Get Free Report)

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.

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