Financial Survey: Commercial Vehicle Group (NASDAQ:CVGI) versus Mayville Engineering (NYSE:MEC)

Mayville Engineering (NYSE:MEC) and Commercial Vehicle Group (NASDAQ:CVGI) are both small-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Risk & Volatility

Mayville Engineering has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Profitability

This table compares Mayville Engineering and Commercial Vehicle Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mayville Engineering	-2.95%	-6.63%	-2.99%
Commercial Vehicle Group	-3.42%	-13.91%	-4.50%

Insider & Institutional Ownership

45.4% of Mayville Engineering shares are held by institutional investors. Comparatively, 72.3% of Commercial Vehicle Group shares are held by institutional investors. 5.6% of Mayville Engineering shares are held by company insiders. Comparatively, 15.6% of Commercial Vehicle Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Mayville Engineering and Commercial Vehicle Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$586.34 million	0.74	-$8.11 million	($0.84)	-20.20
Commercial Vehicle Group	$649.00 million	0.18	-$22.78 million	($0.67)	-4.38

Mayville Engineering has higher earnings, but lower revenue than Commercial Vehicle Group. Mayville Engineering is trading at a lower price-to-earnings ratio than Commercial Vehicle Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Mayville Engineering and Commercial Vehicle Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	1	1	4	0	2.50
Commercial Vehicle Group	1	1	2	0	2.25

Mayville Engineering presently has a consensus target price of $35.75, suggesting a potential upside of 110.67%. Commercial Vehicle Group has a consensus target price of $6.00, suggesting a potential upside of 104.43%. Given Mayville Engineering’s stronger consensus rating and higher probable upside, research analysts clearly believe Mayville Engineering is more favorable than Commercial Vehicle Group.

Summary

Mayville Engineering beats Commercial Vehicle Group on 8 of the 14 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 Commercial Vehicle Group

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, assembles, and sells systems, assemblies, and components to commercial and electric vehicle, and industrial automation markets in North America, Europe, and the Asia-Pacific regions. The company operates in four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. It offers vehicle seats and seating systems, such as static, mechanical, and air suspension seats, as well as office seating products under KAB Seating, National Seating, Bostrom Seating, and Stratos brands. The company also provides thermoformed, injection molded, reaction injection molded, and decorated/hydrographic finished products; vinyl or cloth-covered appliqués; instrument panels; plastics decorating and finishing products; cab structures; and cab interiors, including armrests, grab handles, storage systems, floor coverings and mats, sleeper bunks, headliners, wall panels, and privacy curtains under the AdvancTEK brand. In addition, it offers high and low voltage electrical wire harness assemblies function as the primary electric current carrying devices used in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. Further, the company provides mirrors, wipers, and wiper systems under Bostrom, Moto Mirror, Sprague Devices, and RoadWatch brands; integrated and electro-mechanical assemblies, and cabinets. It offers its products and systems for the truck, power sports, bus, construction, mining, automotive, agricultural, mining, rail, marine, power generation, e-commerce, warehouse integration, transportation, military/defense, industrial, municipal, off-road recreational, and specialty vehicle markets. The company was incorporated in 2000 and is headquartered in New Albany, Ohio.