Analyzing ESGL (NASDAQ:ESGL) & Montrose Environmental Group (NYSE:MEG)

Montrose Environmental Group (NYSE:MEG) and ESGL (NASDAQ:ESGL) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montrose Environmental Group	-2.52%	0.17%	0.08%
ESGL	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Montrose Environmental Group and ESGL, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montrose Environmental Group	1	2	3	0	2.33
ESGL	1	0	0	0	1.00

Montrose Environmental Group currently has a consensus target price of $33.50, indicating a potential upside of 32.10%. Given Montrose Environmental Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Montrose Environmental Group is more favorable than ESGL.

Valuation and Earnings

This table compares Montrose Environmental Group and ESGL”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montrose Environmental Group	$696.40 million	1.29	-$62.31 million	($0.91)	-27.87
ESGL	$6.10 million	N/A	-$630,000.00	N/A	N/A

ESGL has lower revenue, but higher earnings than Montrose Environmental Group.

Insider and Institutional Ownership

87.9% of Montrose Environmental Group shares are held by institutional investors. 11.2% of Montrose Environmental Group shares are held by insiders. Comparatively, 22.4% of ESGL 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.

Risk & Volatility

Montrose Environmental Group has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, ESGL has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Summary

Montrose Environmental Group beats ESGL on 8 of the 11 factors compared between the two stocks.

About Montrose Environmental Group

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.

About ESGL

ESGL Holdings Limited provides waste solutions. It regenerates industrial waste into circular products using technologies and renewable energy. The company was founded in 1999 and is based in Singapore.