Reviewing Arcadis (ARCAY) & Mistras Group (MG)

Mistras Group (NYSE:MG) and Arcadis (OTCMKTS:ARCAY) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Mistras Group 0.92% 5.43% 2.55%
Arcadis N/A N/A N/A

Earnings and Valuation

This table compares Mistras Group and Arcadis’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mistras Group $742.35 million 0.51 $6.84 million $0.55 24.31
Arcadis $3.84 billion 0.45 -$31.53 million N/A N/A

Mistras Group has higher earnings, but lower revenue than Arcadis.

Risk & Volatility

Mistras Group has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Arcadis has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Mistras Group and Arcadis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mistras Group 1 1 2 0 2.25
Arcadis 0 0 0 0 N/A

Mistras Group presently has a consensus target price of $16.50, suggesting a potential upside of 23.41%. Given Mistras Group’s higher probable upside, analysts plainly believe Mistras Group is more favorable than Arcadis.

Dividends

Arcadis pays an annual dividend of $0.48 per share and has a dividend yield of 2.4%. Mistras Group does not pay a dividend.

Institutional and Insider Ownership

58.6% of Mistras Group shares are held by institutional investors. 42.4% of Mistras Group shares are held by company insiders. Comparatively, 1.0% of Arcadis shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Mistras Group beats Arcadis on 10 of the 12 factors compared between the two stocks.

About Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions worldwide. The company operates through three segments: Services, International, and Products and Systems. It offers traditional non-destructive testing, and inspection and testing program services; and engineering consulting services. The company also provides maintenance and light mechanical services, such as corrosion removal, mitigation, and prevention; insulation installation and removal; electrical; heat tracing and industrial cleaning; pipefitting; and welding. In addition, it develops enterprise inspection database management software and plant condition management software for process industries and equipment. Further, the company utilizes scaffolding and rope access to access at-height and confined assets; certified divers for subsea inspection and maintenance; and unmanned aerial, land-based, and subsea systems for a range of inspection applications. Additionally, it offers online condition-monitoring solutions; various Web-based solutions; and custom-developed software. Furthermore, the company provides quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. The company also designs, manufactures, sells acoustic emission sensors, instruments, and turn-key systems for monitoring and testing materials, pressure components, processes, and structures, as well as automated ultrasonic systems and scanners. It serves oil and gas, commercial aerospace and defense, fossil and nuclear power, alternative and renewable energy, public infrastructure, chemicals, transportation, primary metals and metalworking, pharmaceutical/biotechnology, and food processing industries, as well as research and engineering institutions. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.

About Arcadis

Arcadis NV operates as a design and consultancy firm for natural and built assets worldwide. The company operates through Europe & Middle East, the Americas, Asia Pacific, and CallisonRTKL segments. It offers design, consultancy, engineering, project, and management services for various sectors. The company provides architectural design, landscape architecture, and performance driven architecture services; business advisory services for asset strategy and performance, business transformation and resiliency, investment and finance, and technology and information; and construction management and site supervision, cost management, program management, and project management services. It also offers contract solutions for claims preparation and defense, dispute avoidance and resolution, expert witness, and strategic procurement and contract advice; cost and commercial management, strategic procurement and contract strategy, and whole lifecycle costing services; civil and structural engineering, asset management, electrical engineering, building information modelling, mechanical engineering, and tunneling and underground infrastructure services; and environmental solutions, such as site evaluation and restoration, strategic environmental consulting, environmental construction, and environmental planning services. In addition, the company provides sustainable urban development, transportation planning, and urban planning services; and water supply and treatment, water management, and industrial water treatment services. It serves natural resources, power, retail, transportation, water and utilities, public, and other industrial sectors, as well as cities, commercial developers, contractors, and financial institutions. The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997. Arcadis NV was founded in 1888 and is based in Amsterdam, the Netherlands.

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