Head-To-Head Review: Mayville Engineering (NYSE:MEC) & Mueller Water Products (NYSE:MWA)

Mueller Water Products (NYSE:MWAGet Free Report) and Mayville Engineering (NYSE:MECGet Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

91.7% of Mueller Water Products shares are held by institutional investors. Comparatively, 45.4% of Mayville Engineering shares are held by institutional investors. 1.1% of Mueller Water Products shares are held by company insiders. Comparatively, 5.6% of Mayville Engineering shares are held 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Mueller Water Products 15.02% 23.55% 13.12%
Mayville Engineering -2.95% -6.63% -2.99%

Risk & Volatility

Mueller Water Products has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Mayville Engineering has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares Mueller Water Products and Mayville Engineering”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mueller Water Products $1.43 billion 2.48 $191.70 million $1.41 16.13
Mayville Engineering $546.49 million 0.80 -$8.11 million ($0.84) -20.42

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

Analyst Ratings

This is a breakdown of recent recommendations for Mueller Water Products and Mayville Engineering, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mueller Water Products 1 2 2 0 2.20
Mayville Engineering 1 1 4 0 2.50

Mueller Water Products currently has a consensus target price of $30.20, suggesting a potential upside of 32.75%. Mayville Engineering has a consensus target price of $35.75, suggesting a potential upside of 108.47%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, analysts plainly believe Mayville Engineering is more favorable than Mueller Water Products.

Summary

Mueller Water Products beats Mayville Engineering on 9 of the 14 factors compared between the two stocks.

About Mueller Water Products

(Get Free Report)

Mueller Water Products, Inc. manufactures and markets products and services for the transmission, distribution, and measurement of water used by municipalities, and the residential and non-residential construction industries in the United States, Israel, and internationally. It operates in two segments, Water Flow Solutions and Water Management Solutions. The Water Flow Solutions segment provides valves for water systems, such as iron gate, butterfly, tapping, check, knife, plug, and ball valves, which are used to control distribution and transmission of potable water and non-potable water, as well as in water transmission or distribution, water treatment facilities, or industrial applications. It also offers service brass products. The Water Management Solutions segment offers dry-barrel and wet-barrel fire hydrants for water infrastructure development; fire protection systems, and water infrastructure repair and replacement projects; pipe repair products, such as couplings, grips, and clamps used to repair leaks; residential, fire line, and commercial water metering products, systems, and services; water leak detection and pipe condition assessment products and services; machines and tools for tapping, drilling, extracting, installing, and stopping-off; gas valve products for use in gas distribution systems; and intelligent water solutions, including pressure control valves, advanced pressure management, network analytics, event management, and date logging. It sells its products under the Canada Valve, Centurion, Ez-Max, Hydro Gate, Hydro-Guard, HYMAX, HYMAX VERSA, Jones, Krausz, Milliken, Mueller, Pratt, Pratt Industrial, Repamax, Repaflex, Singer, Echologics, Echoshore, ePulse, Hersey, LeakFinderRT, LeakFinderST, LeakListener, LeakTuner, Mi.Echo, Mi.Net, Mueller Systems, Sentryx, and U.S. Pipe Valve and Hydrant brands. Mueller Water Products, Inc. was founded in 1857 and is headquartered in Atlanta, Georgia.

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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