Mastech Digital (NYSE: MHH) and Montrose Environmental Group (NYSE: MEG) Critical Analysis

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Montrose Environmental Group (NYSE:MEG – Get Rating) and Mastech Digital (NYSE:MHH – Get Rating) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Risk and Volatility

Montrose Environmental Group has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. In comparison, Mastech Digital has a beta of 0.64, indicating that its stock price is stock is 36% less volatile than the S&P 500.

Analyst Notes

This is a summary of recent recommendations for Montrose Environmental Group and Mastech Digital, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Montrose Environmental Group 0 2 3 0 2.60
digital mastech 0 0 0 0 N / A

Montrose Environmental Group currently has a consensus target price of $47.75, suggesting a potential upside of 39.99%. Given Montrose Environmental Group’s likely higher upside, equity research analysts clearly believe Montrose Environmental Group is more favorable than Mastech Digital.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Montrose Environmental Group and Mastech Digital.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Montrose Environmental Group $546.41 million 1.85 -$25.33 million ($1.36) -25.08
digital mastech $222.01 million 0.78 $12.22 million $1.10 13.52

Mastech Digital has lower revenues, but higher profits than Montrose Environmental Group. Montrose Environmental Group trades at a lower price-to-earnings ratio than Mastech Digital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Montrose Environmental Group and Mastech Digital.

Net margins Return on equity return on assets
Montrose Environmental Group -3.89% -1.47% -0.45%
digital mastech 5.76% 19.26% 12.02%

Institutional and insider ownership

96.5% of the shares of Montrose Environmental Group are held by institutional investors. Comparatively, 14.3% of Mastech Digital shares are held by institutional investors. 11.0% of the shares of Montrose Environmental Group are held by insiders. Comparatively, 62.5% of Mastech Digital shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.

Summary

Mastech Digital beats Montrose Environmental Group on 7 out of 13 factors compared between the two stocks.

About Montrose Environmental Group (Get an assessment)

Montrose Environmental Group, Inc. operates as an environmental services company in the United States. The Company operates in three segments: Assessment, Authorization and Response; measurement and analysis; and remediation and reuse. The Assessment, Permitting and Response segment provides scientific advisory and advisory services to support environmental assessments, environmental emergency response and recovery, toxicology consulting, and environmental audits and permits for ongoing operations, facility upgrades, new projects, decommissioning projects and development projects. Its consulting and technical advisory services include regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water and soil to determine contaminant concentrations, as well as the toxicological impact of contaminants on flora, fauna and human health. Its services include source and ambient air testing and monitoring, leak detection and advanced analytical laboratory services, such as analysis of air, storm water, wastewater and Of drinking water. The Remediation and Reuse segment provides engineering, design, implementation, operation and maintenance services primarily to treat contaminated water, remove contaminants from soil or create biogas from waste. It serves the technology, media, chemical, energy, power and utilities, industrial and manufacturing, finance and engineering industries, as well as local, state, provincial and federal government entities. The company was founded in 2012 and is based in North Little Rock, Arkansas.

About Mastech Digital (Get an assessment)

Mastech digital logoMastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium and small businesses in the United States. It operates through two segments, Data and Analytics Services and IT Staffing Services. The Company offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation using onsite and offshore resources. It also provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social media, automation, business intelligence/technology. warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. Additionally, the company offers digital transformation services, such as digital learning services; and a cloud-based enterprise application in sales, marketing, and customer service organizations. It provides its services across various verticals, including financial services, government, healthcare, manufacturing, retail, technology, telecommunications and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.



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