Midwest Energy Emissions (MEEC) vs. MTS Systems (MTSC) Financial Comparison

Midwest Energy Emissions (OTCMKTS:MEEC) and MTS Systems (NASDAQ:MTSC) are both small-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Midwest Energy Emissions -4.18% N/A -49.30%
MTS Systems 5.36% 10.00% 4.00%

Insider and Institutional Ownership

98.0% of MTS Systems shares are owned by institutional investors. 27.5% of Midwest Energy Emissions shares are owned by insiders. Comparatively, 2.1% of MTS Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Midwest Energy Emissions and MTS Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midwest Energy Emissions 0 0 0 0 N/A
MTS Systems 0 0 1 0 3.00

MTS Systems has a consensus target price of $70.00, indicating a potential upside of 24.40%. Given MTS Systems’ higher possible upside, analysts plainly believe MTS Systems is more favorable than Midwest Energy Emissions.

Earnings & Valuation

This table compares Midwest Energy Emissions and MTS Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Midwest Energy Emissions $12.30 million 1.74 -$4.82 million ($0.06) -4.67
MTS Systems $778.03 million 1.29 $61.32 million $3.28 17.16

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

Volatility & Risk

Midwest Energy Emissions has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, MTS Systems has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Dividends

MTS Systems pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. Midwest Energy Emissions does not pay a dividend. MTS Systems pays out 36.6% of its earnings in the form of a dividend. MTS Systems has increased its dividend for 8 consecutive years.

Summary

MTS Systems beats Midwest Energy Emissions on 12 of the 16 factors compared between the two stocks.

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.

About MTS Systems

MTS Systems Corporation supplies test systems and sensors in the Americas, Europe, and Asia. The company's Test segment offers road simulators and component test systems, vehicle performance test systems, vehicle dynamics simulators, electrical motors and energy recovery systems, tire performance and rolling resistance measurement systems, and moving ground-plane systems and balances. It also provides systems for the physical characterization of material properties; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices; products, systems, and software to perform static and fatigue testing of aircraft and space vehicles; products for blades, bearings, and wind turbines; structural engineering systems, such as static and dynamic testing; and seismic simulation tables. In addition, this segment offers installation, product life cycle management, professional training, calibration and metrology, technical consulting, and onsite and factory repair and maintenance services, as well as various accessories and spare parts. It serves automobile, truck, motorcycle, motorsports vehicles, construction and agricultural equipment, rail and off-road vehicle manufacturers, and their suppliers, as well as the power generation, aerospace, vehicles, biomedical, structural engineering, oil and gas, wind energy, and other industries. The company's Sensors segment offers sensors for measurements of vibration, pressure, position, force, and sound; and piezoelectric sensors and components for vibration, pressure, and force measurement. It serves the automotive, aerospace, industrial, defense, and research and development markets. The company sells its products through direct sales and service organizations, and independent representatives and distributors, as well as through catalogs, Internet, etc. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota.

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