Head to Head Review: Montrose Environmental Group (NYSE:ONT) and Virco Manufacturing (NASDAQ:VIRC)

Virco Manufacturing (NASDAQ:VIRCGet Free Report) and Montrose Environmental Group (NYSE:ONTGet Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for Virco Manufacturing and Montrose Environmental Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virco Manufacturing 1 1 0 0 1.50
Montrose Environmental Group 2 3 1 0 1.83

Montrose Environmental Group has a consensus price target of $19.50, indicating a potential upside of 10.05%. Given Montrose Environmental Group’s stronger consensus rating and higher possible upside, analysts clearly believe Montrose Environmental Group is more favorable than Virco Manufacturing.

Volatility & Risk

Virco Manufacturing has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Earnings and Valuation

This table compares Virco Manufacturing and Montrose Environmental Group”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virco Manufacturing $199.65 million 0.48 $2.57 million ($0.06) -100.83
Montrose Environmental Group $773.34 million 0.80 -$840,000.00 ($0.33) -53.70

Virco Manufacturing has higher earnings, but lower revenue than Montrose Environmental Group. Virco Manufacturing is trading at a lower price-to-earnings ratio than Montrose Environmental Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Virco Manufacturing and Montrose Environmental Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virco Manufacturing -0.48% -0.16% -0.10%
Montrose Environmental Group -1.44% 4.11% 1.89%

Insider and Institutional Ownership

31.0% of Virco Manufacturing shares are held by institutional investors. Comparatively, 87.9% of Montrose Environmental Group shares are held by institutional investors. 16.9% of Virco Manufacturing shares are held by insiders. Comparatively, 10.4% of Montrose Environmental Group shares are held 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

Montrose Environmental Group beats Virco Manufacturing on 10 of the 14 factors compared between the two stocks.

About Virco Manufacturing

(Get Free Report)

Virco Mfg. Corporation engages in the design, production, and distribution of furniture in the United States and Canada. The company offers seating products, including 4-leg chairs, cantilever chairs, mobile task chairs and lab stools, tablet armchairs, steel-frame and floor rockers, series stools, hard plastic seating, folding and upholstered stack chairs, and plastic stack and upholstered ergonomic chairs. It also provides activity, butcher block, folding, office, technology, and mobile tables; desks and workstations, and instructor media stations and towers; chair desks and combo units, tablet arm and caster units, mobile workstations, student desks, and returns and credenzas; and computer furniture solutions. In addition, the company provides administrative office furniture, including desks, returns, bookcases, and other items, as well as steel storage cabinets, wardrobe tower cabinets, file credenzas, and mobile pedestals; laboratory furniture comprising steel-based science tables, table bases, lab stools, and wood-frame science tables; mobile furniture, such as mobile tables, mobile cabinets, and mobile chairs for school settings and offices; and handling and storage equipment, and stackable storage trucks. It serves public and private educational institutions, charter schools, convention centers and arenas, hospitality providers, government facilities, and places of worship through its sales and support teams, and dealers' network. Virco Mfg. Corporation was incorporated in 1950 and is headquartered in Torrance, California.

About Montrose Environmental Group

(Get Free Report)

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.

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