Financial Analysis: Trimble (TRMB) vs. Midwest Energy Emissions (OTCMKTS:MEEC)

Trimble (NASDAQ:TRMB) and Midwest Energy Emissions (OTCMKTS:MEEC) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Trimble and Midwest Energy Emissions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trimble 0 2 4 0 2.67
Midwest Energy Emissions 0 0 0 0 N/A

Trimble presently has a consensus price target of $41.67, suggesting a potential upside of 1.28%. Given Trimble’s higher probable upside, research analysts plainly believe Trimble is more favorable than Midwest Energy Emissions.

Profitability

This table compares Trimble and Midwest Energy Emissions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trimble 9.10% 16.48% 8.08%
Midwest Energy Emissions -39.17% N/A -60.18%

Institutional & Insider Ownership

91.0% of Trimble shares are held by institutional investors. 0.4% of Trimble shares are held by company insiders. Comparatively, 27.5% of Midwest Energy Emissions 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.

Earnings & Valuation

This table compares Trimble and Midwest Energy Emissions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trimble $3.11 billion 3.34 $282.80 million $1.69 24.34
Midwest Energy Emissions $12.30 million 1.67 -$4.82 million ($0.06) -4.50

Trimble has higher revenue and earnings than Midwest Energy Emissions. Midwest Energy Emissions is trading at a lower price-to-earnings ratio than Trimble, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Trimble has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500. Comparatively, Midwest Energy Emissions has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.

Summary

Trimble beats Midwest Energy Emissions on 11 of the 12 factors compared between the two stocks.

About Trimble

Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company operates in four segments: Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. The Buildings and Infrastructure segment offers field and office software for route selection and design; systems to guide and control construction equipment; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; 3D conceptual design and modeling software; building information modeling software; integrated site layout and measurement systems; applications for sub-contractors and trades; and integrated workplace management services software. This segment serves architects, engineers, contractors, owners, and operators. The Geospatial segment provides surveying and geospatial products and services to the construction, engineering, mining, oil and gas, energy and utilities, government, and land management sectors; and geographic information systems. The Resources and Utilities segment offers precision agriculture products and services that consist of guidance and positioning systems, automated and variable-rate application and technology systems, and information management solutions primarily to customers working in agriculture, forestry, and utilities. The Transportation segment offers a suite of solutions under the Trimble, PeopleNet, GEOTrac, TMW, ISE, Punch, Veltec, and Trimble MAPS brands to customers working in long haul trucking, field service management, rail, and military aviation. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Sunnyvale, California.

About Midwest Energy Emissions

Midwest Energy Emissions Corp. operates as an environmental services and technology company. It focuses on the delivery of mercury capture technologies to coal-fired power plants in the United States, Canada, Europe, and Asia. The company is headquartered in Lewis Center, Ohio.

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