Mesa Laboratories (NASDAQ: MLAB) is one of 28 public companies in the “Testing & Measuring Equipment” industry, but how does it weigh in compared to its rivals? We will compare Mesa Laboratories to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Dividends

Mesa Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 0.4%. Mesa Laboratories pays out 22.9% of its earnings in the form of a dividend. As a group, “Testing & Measuring Equipment” companies pay a dividend yield of 0.6% and pay out 21.5% of their earnings in the form of a dividend. Mesa Laboratories lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Mesa Laboratories and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mesa Laboratories 11.31% 16.58% 9.37%
Mesa Laboratories Competitors -5.38% 1.59% -1.24%

Insider and Institutional Ownership

67.0% of Mesa Laboratories shares are held by institutional investors. Comparatively, 58.2% of shares of all “Testing & Measuring Equipment” companies are held by institutional investors. 15.7% of Mesa Laboratories shares are held by insiders. Comparatively, 10.4% of shares of all “Testing & Measuring Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Mesa Laboratories and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Mesa Laboratories $95.22 million $25.86 million 54.48
Mesa Laboratories Competitors $499.43 million $99.03 million -3.59

Mesa Laboratories’ rivals have higher revenue and earnings than Mesa Laboratories. Mesa Laboratories is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mesa Laboratories and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mesa Laboratories 0 0 1 0 3.00
Mesa Laboratories Competitors 48 389 493 9 2.49

As a group, “Testing & Measuring Equipment” companies have a potential downside of 22.08%. Given Mesa Laboratories’ rivals higher possible upside, analysts plainly believe Mesa Laboratories has less favorable growth aspects than its rivals.

Volatility and Risk

Mesa Laboratories has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Mesa Laboratories’ rivals have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.

Summary

Mesa Laboratories beats its rivals on 8 of the 15 factors compared.

Mesa Laboratories Company Profile

Mesa Laboratories, Inc. is focused primarily on quality control products and services. The Company operates through four segments: Instruments, Continuous Monitoring, Biological Indicators and Cold Chain. The Instruments Division designs, manufactures and markets quality control instruments and disposable products. Its Biological Indicators Division provides testing services, along with the manufacturing and marketing of biological indicators and distribution of chemical indicators used to assess the effectiveness of sterilization processes. Its Continuous Monitoring Division designs, develops and markets systems, which are used to monitor various environmental parameters. Its Cold Chain Division provides parameter (primarily temperature) monitoring of products in a cold chain. The Company’s brands include DataTrace, DialyGuard, DryCal, Torqo, SureTorque, BGI, Mesa, PCD, Apex, CheckPoint, Mesa and TempTrust.

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