Comparing Proto Labs (NYSE:PRLB) & Mayville Engineering (NYSE:MEC)

Mayville Engineering (NYSE:MECGet Free Report) and Proto Labs (NYSE:PRLBGet Free Report) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Mayville Engineering and Proto Labs’ 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%
Proto Labs 5.44% 4.80% 4.22%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Mayville Engineering and Proto Labs, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mayville Engineering 1 1 4 0 2.50
Proto Labs 0 0 3 1 3.25

Mayville Engineering presently has a consensus target price of $35.75, indicating a potential upside of 104.71%. Proto Labs has a consensus target price of $89.00, indicating a potential upside of 2.70%. Given Mayville Engineering’s higher possible upside, analysts plainly believe Mayville Engineering is more favorable than Proto Labs.

Institutional & Insider Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. Comparatively, 84.5% of Proto Labs shares are owned by institutional investors. 5.6% of Mayville Engineering shares are owned by insiders. Comparatively, 1.3% of Proto Labs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Mayville Engineering has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Proto Labs has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mayville Engineering and Proto Labs”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 0.76 -$8.11 million ($0.84) -20.79
Proto Labs $533.13 million 3.89 $21.24 million $1.25 69.33

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

Summary

Proto Labs beats Mayville Engineering on 11 of the 15 factors compared between the two stocks.

About Mayville Engineering

(Get Free Report)

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 Proto Labs

(Get Free Report)

Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.

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