Comparing Arcadis (OTCMKTS:ARCAY) and Mayville Engineering (NYSE:MEC)

Mayville Engineering (NYSE:MEC) and Arcadis (OTCMKTS:ARCAY) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Mayville Engineering has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Arcadis has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mayville Engineering and Arcadis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$533.52 million	0.68	$25.97 million	$0.58	30.62
Arcadis	$4.20 billion	0.86	$262.95 million	N/A	N/A

Arcadis has higher revenue and earnings than Mayville Engineering.

Analyst Recommendations

This is a breakdown of recent recommendations for Mayville Engineering and Arcadis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	1	4	1	3.00
Arcadis	0	0	0	0	0.00

Mayville Engineering currently has a consensus target price of $21.50, indicating a potential upside of 21.07%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, equities analysts plainly believe Mayville Engineering is more favorable than Arcadis.

Profitability

This table compares Mayville Engineering and Arcadis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mayville Engineering	2.29%	5.88%	3.06%
Arcadis	N/A	N/A	N/A

Institutional & Insider Ownership

45.4% of Mayville Engineering shares are held by institutional investors. 7.2% of Mayville Engineering shares are held by insiders. Comparatively, 1.0% of Arcadis shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Mayville Engineering beats Arcadis on 10 of the 13 factors compared between the two stocks.

About Mayville Engineering

Mayville Engineering Company, Inc., together with its subsidiaries, engages in the production, design, prototyping and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components in the United States. It also supplies engineered components to original equipment manufacturers. The company serves heavy and medium duty commercial vehicles, construction and access equipment, powersports, agriculture, military, and other end markets. Mayville Engineering Company, Inc. was founded in 1945 and is headquartered in Milwaukee, Wisconsin.

About Arcadis

Arcadis NV offers design, engineering, and consultancy solutions for natural and built assets in The Americas, Europe, the Middle East, and the Asia Pacific. It operates through Places, Mobility, Resilience, and Intelligence segments. The company offers architectural and urbanism services; and asset management services, such as asset management strategy and planning, asset management decision making and operational optimization, life cycle planning and asset management systems, asset information/condition assessment, risk and review, organization and people, and asset management/O&M. It also provides business advisory services, including asset strategy and performance, business transformation and resiliency, investment and finance, operations and maintenance, and technology and information; contract solutions; cost and commercial management services; and design and engineering solutions for highways, railways, bridges, tunnels, power utilities, water utilities, ports and waterways, geotechnics, architecture, and structures, as well as building mechanical, electrical, and plumbing. In addition, the company offers digital environmental health safety and sustainability, environmental restoration, and project management solutions. Further, it provides mobility solutions for connected highways, intelligent rail and transit, integrated airports, and new mobility; places solutions; resilience solutions, such as energy transition, climate adaption, water optimization, enviro socio permitting, sustainable advisory, environmental restoration, and sustainable operations; and water supply and treatment, distribution, resource management, and industrial water and wastewater services. 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 headquartered in Amsterdam, the Netherlands.