Mayville Engineering (NYSE:MEC – Get Free Report) and CVD Equipment (NASDAQ:CVV – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Volatility and Risk
Mayville Engineering has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, CVD Equipment has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Mayville Engineering and CVD Equipment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mayville Engineering | 1 | 1 | 4 | 0 | 2.50 |
| CVD Equipment | 0 | 1 | 0 | 0 | 2.00 |
Mayville Engineering presently has a consensus target price of $35.75, suggesting a potential upside of 157.96%. Given Mayville Engineering’s stronger consensus rating and higher probable upside, analysts clearly believe Mayville Engineering is more favorable than CVD Equipment.
Institutional & Insider Ownership
45.4% of Mayville Engineering shares are held by institutional investors. Comparatively, 31.6% of CVD Equipment shares are held by institutional investors. 5.6% of Mayville Engineering shares are held by insiders. Comparatively, 23.5% of CVD Equipment shares are held 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.
Profitability
This table compares Mayville Engineering and CVD Equipment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mayville Engineering | -2.95% | -6.63% | -2.99% |
| CVD Equipment | 62.01% | -13.91% | -12.52% |
Valuation and Earnings
This table compares Mayville Engineering and CVD Equipment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mayville Engineering | $586.34 million | 0.60 | -$8.11 million | ($0.84) | -16.50 |
| CVD Equipment | $25.79 million | 1.04 | -$1.59 million | $1.45 | 2.67 |
CVD Equipment has lower revenue, but higher earnings than Mayville Engineering. Mayville Engineering is trading at a lower price-to-earnings ratio than CVD Equipment, indicating that it is currently the more affordable of the two stocks.
Summary
Mayville Engineering beats CVD Equipment on 8 of the 14 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 CVD Equipment
CVD Equipment Corporation, together with its subsidiaries, designs, develops, manufactures, and sells equipment to develop and manufacture materials and coatings in the United States and internationally. It operates through three segments: CVD Equipment, Stainless Design Concepts, and CVD Materials. The CVD Equipment segment offers chemical vapor deposition, physical vapor transport, and thermal process equipment under the FirstNano brand for various markets, such as high power electronics, aerospace advanced materials for gas turbine jet engines, and nanomaterials used in batteries, as well as semiconductors, LEDs, carbon nanotubes, nanowires, solar cells, and other industrial and research applications. The Stainless Design Concepts segment provides ultra-high purity gas and chemical delivery control systems, including gas cylinder storage cabinets, custom gas and chemical delivery systems, gas and liquid valve manifold boxes, and gas isolation boxes for semiconductor fabrication processes, aerospace, solar cells, LEDs, carbon nanotubes, nanowires, and industrial applications. The CVD Materials segment offers products related to advanced materials and coatings, such as MesoPlasma printing services and products comprising heaters, antennas, and sensors to aerospace, satellite, power generation, defense, and other markets. The company also provides annealing, diffusion, and low pressure chemical vapor deposition furnaces; and standard and custom fabricated quartz-ware used in its equipment and other customer tools. The company was incorporated in 1982 and is headquartered in Central Islip, New York.
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