Head-To-Head Contrast: Servicemaster Global (SERV) & Mistras Group (MG)

Servicemaster Global (NYSE: SERV) and Mistras Group (NYSE:MG) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Servicemaster Global and Mistras Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Servicemaster Global 2 2 8 0 2.50
Mistras Group 1 6 1 0 2.00

Servicemaster Global currently has a consensus price target of $50.45, suggesting a potential downside of 1.93%. Mistras Group has a consensus price target of $34.57, suggesting a potential upside of 73.90%. Given Mistras Group’s higher possible upside, analysts plainly believe Mistras Group is more favorable than Servicemaster Global.

Profitability

This table compares Servicemaster Global and Mistras Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Servicemaster Global 8.16% 40.22% 5.42%
Mistras Group 0.68% 6.16% 3.48%

Risk and Volatility

Servicemaster Global has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Mistras Group has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares Servicemaster Global and Mistras Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Servicemaster Global $2.75 billion 2.53 $155.00 million $1.74 29.57
Mistras Group $719.18 million 0.78 $24.65 million $0.14 142.01

Servicemaster Global has higher revenue and earnings than Mistras Group. Servicemaster Global is trading at a lower price-to-earnings ratio than Mistras Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

62.5% of Mistras Group shares are owned by institutional investors. 1.2% of Servicemaster Global shares are owned by insiders. Comparatively, 44.7% of Mistras Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Servicemaster Global beats Mistras Group on 9 of the 14 factors compared between the two stocks.

Servicemaster Global Company Profile

ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.

Mistras Group Company Profile

Mistras Group, Inc. offers asset protection solutions and is a provider of technology-enabled asset protection solutions used to evaluate the structural integrity and reliability of critical energy, industrial and public infrastructure. The Company’s segments are Services segment, which provides asset protection solutions in North America with concentration on the United States along with a Canadian services business, consisting of non-destructive testing, and inspection and engineering services that are used to evaluate structural integrity and reliability of critical energy, industrial and public infrastructure; International segment, which offers services, products and systems similar to those of its Services and Products and Systems segments to markets in Europe, the Middle East, Africa, Asia and South America, and Products and Systems segment, which designs, manufactures, sells, installs and services asset protection products and systems, including equipment and instrumentation.

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