Head-To-Head Survey: Wabtec (NYSE:WAB) & Mayville Engineering (NYSE:MEC)

Wabtec (NYSE:WAB) and Mayville Engineering (NYSE:MEC) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Valuation and Earnings

This table compares Wabtec and Mayville Engineering”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wabtec	$11.17 billion	4.33	$1.17 billion	$7.44	38.49
Mayville Engineering	$546.49 million	0.69	-$8.11 million	($0.84)	-17.54

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wabtec	10.59%	15.10%	7.50%
Mayville Engineering	-2.95%	-6.63%	-2.99%

Volatility and Risk

Wabtec has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Mayville Engineering has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Wabtec and Mayville Engineering, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wabtec	0	2	10	0	2.83
Mayville Engineering	1	1	4	0	2.50

Wabtec presently has a consensus target price of $313.55, indicating a potential upside of 9.50%. Mayville Engineering has a consensus target price of $35.75, indicating a potential upside of 142.70%. Given Mayville Engineering’s higher probable upside, analysts clearly believe Mayville Engineering is more favorable than Wabtec.

Institutional & Insider Ownership

91.7% of Wabtec shares are held by institutional investors. Comparatively, 45.4% of Mayville Engineering shares are held by institutional investors. 0.6% of Wabtec shares are held by insiders. Comparatively, 5.6% of Mayville Engineering shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Wabtec beats Mayville Engineering on 10 of the 13 factors compared between the two stocks.

About Wabtec

Westinghouse Air Brake Technologies Corporation, together with its subsidiaries, provides technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It offers diesel-electric, battery, and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products. The company also offers positive train control equipment; pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, train cruise controls, and train remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers; heat transfer components and systems; track and switch products; new commuter and switcher locomotives; and turbochargers. Further, the company offers freight locomotive overhauls, modernizations, and refurbishment services; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; and maintenance of way equipment and services. Additionally, it provides railway and freight braking equipment and related components; friction products, such as brake shoes, discs, and pads; heating, ventilation, and air conditioning equipment; access and platform screen doors; pantographs; auxiliary power converter and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

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.