Contrasting Montrose Environmental Group (NYSE:MEG) and Strategic Environmental & Energy Resources (OTCMKTS:SENR)

Strategic Environmental & Energy Resources (OTCMKTS:SENR) and Montrose Environmental Group (NYSE:MEG) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Institutional and Insider Ownership

87.9% of Montrose Environmental Group shares are held by institutional investors. 43.9% of Strategic Environmental & Energy Resources shares are held by insiders. Comparatively, 11.9% of Montrose Environmental Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Strategic Environmental & Energy Resources has a beta of -1.84, suggesting that its share price is 284% less volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Profitability

This table compares Strategic Environmental & Energy Resources and Montrose Environmental Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strategic Environmental & Energy Resources	-37.60%	N/A	-139.50%
Montrose Environmental Group	-2.52%	0.17%	0.08%

Valuation & Earnings

This table compares Strategic Environmental & Energy Resources and Montrose Environmental Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strategic Environmental & Energy Resources	$4.31 million	0.43	-$1.80 million	($0.03)	-0.94
Montrose Environmental Group	$826.32 million	0.95	-$62.31 million	($0.91)	-24.48

Strategic Environmental & Energy Resources has higher earnings, but lower revenue than Montrose Environmental Group. Montrose Environmental Group is trading at a lower price-to-earnings ratio than Strategic Environmental & Energy Resources, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Strategic Environmental & Energy Resources and Montrose Environmental Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strategic Environmental & Energy Resources	0	0	0	0	0.00
Montrose Environmental Group	1	2	3	0	2.33

Montrose Environmental Group has a consensus price target of $33.50, indicating a potential upside of 50.40%. Given Montrose Environmental Group’s stronger consensus rating and higher probable upside, analysts clearly believe Montrose Environmental Group is more favorable than Strategic Environmental & Energy Resources.

Summary

Montrose Environmental Group beats Strategic Environmental & Energy Resources on 10 of the 14 factors compared between the two stocks.

About Strategic Environmental & Energy Resources

Strategic Environmental & Energy Resources, Inc. provides clean-technologies, waste management, and related services in the United States and internationally. It operates through two segments, Environmental Solutions and Solid Waste. The company designs and sells H2SPlus and OdorFilter dry scrubber solutions for management of hydrogen sulfide in biogas, landfill gas, and petroleum processing operations; develops and designs proprietary technologies and systems for conditioning biogas for use as renewable natural gas for a range of applications, such as transportation fuel and natural gas pipeline injection; and develops waste destruction technology using pyrolytic heating process combined with non-thermal plasma assisted oxidation. In addition, it develops renewable natural gas projects; and advanced chemical absorbents and catalysts that enhance the capability of biogas produced from landfill, wastewater treatment, and agricultural digester operations, as well as offers soil amendment pellets. The company serves companies primarily in the oil and gas refineries, landfills, medical waste destruction operations, agricultural companies, and food and beverage companies, as well as other commercial and industrial customers. Strategic Environmental & Energy Resources, Inc. is headquartered in Broomfield, Colorado.

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.