Financial Analysis: SKK (NASDAQ:SKK) & Mayville Engineering (NYSE:MEC)

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

Risk and Volatility

SKK has a beta of -0.97, suggesting that its share price is 197% less volatile than the S&P 500. Comparatively, Mayville Engineering has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SKK	$11.30 million	0.53	$440,000.00	N/A	N/A
Mayville Engineering	$581.60 million	0.63	$25.97 million	$0.58	30.94

Mayville Engineering has higher revenue and earnings than SKK.

Institutional and Insider Ownership

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

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for SKK and Mayville Engineering, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SKK	1	0	0	0	1.00
Mayville Engineering	0	3	3	0	2.50

Mayville Engineering has a consensus target price of $22.00, indicating a potential upside of 22.60%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, analysts plainly believe Mayville Engineering is more favorable than SKK.

Summary

Mayville Engineering beats SKK on 12 of the 12 factors compared between the two stocks.

About SKK

SKK Holdings Limited, through its subsidiaries, provides civil engineering services in Singapore. It undertakes subsurface utility works, such as power and telecommunication cable laying works, water pipeline works, and sewer rehabilitation works. The company also offers gas pipeline and sewer construction works; and underground piping, underground utility infrastructure construction and maintenance, horizontal directional drilling, and plumbing and sanitary works. It serves government authorities, utility companies, or contractors. The company was founded in 2013 and is headquartered in Singapore.

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.