Reviewing Mistras Group (MG) and WageWorks (WAGE)

Mistras Group (NYSE: MG) and WageWorks (NYSE:WAGE) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Valuation & Earnings

This table compares Mistras Group and WageWorks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mistras Group $719.18 million 0.88 $24.65 million $0.14 159.23
WageWorks $364.71 million 6.73 $20.20 million $1.17 52.91

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

Profitability

This table compares Mistras Group and WageWorks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mistras Group 0.68% 6.16% 3.48%
WageWorks 9.87% 9.60% 3.37%

Volatility and Risk

Mistras Group has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, WageWorks has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Institutional & Insider Ownership

61.9% of Mistras Group shares are held by institutional investors. 44.7% of Mistras Group shares are held by company insiders. Comparatively, 3.5% of WageWorks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Mistras Group and WageWorks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mistras Group 1 5 1 0 2.00
WageWorks 0 1 4 0 2.80

Mistras Group currently has a consensus price target of $36.33, suggesting a potential upside of 63.00%. WageWorks has a consensus price target of $83.00, suggesting a potential upside of 34.09%. Given Mistras Group’s higher probable upside, equities analysts clearly believe Mistras Group is more favorable than WageWorks.

Summary

Mistras Group beats WageWorks on 8 of the 14 factors compared between the two stocks.

Mistras Group Company Profile

Mistras Group, Inc. offers asset protection solutions and is a provider of technology-enabled asset protection solutions used to evaluate the structural integrity and reliability of critical energy, industrial and public infrastructure. The Company’s segments are Services segment, which provides asset protection solutions in North America with concentration on the United States along with a Canadian services business, consisting of non-destructive testing, and inspection and engineering services that are used to evaluate structural integrity and reliability of critical energy, industrial and public infrastructure; International segment, which offers services, products and systems similar to those of its Services and Products and Systems segments to markets in Europe, the Middle East, Africa, Asia and South America, and Products and Systems segment, which designs, manufactures, sells, installs and services asset protection products and systems, including equipment and instrumentation.

WageWorks Company Profile

WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.

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