Reviewing Mayville Engineering (NYSE:MEC) and Fanuc (OTCMKTS:FANUY)

Mayville Engineering (NYSE:MEC) and Fanuc (OTCMKTS:FANUY) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Institutional & Insider Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. Comparatively, 1.5% of Fanuc shares are owned by institutional investors. 5.6% of Mayville Engineering shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Mayville Engineering has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Fanuc has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Mayville Engineering and Fanuc, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	1	1	4	0	2.50
Fanuc	0	2	0	1	2.67

Mayville Engineering presently has a consensus target price of $35.75, suggesting a potential upside of 86.88%. Given Mayville Engineering’s higher probable upside, research analysts clearly believe Mayville Engineering is more favorable than Fanuc.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$546.49 million	0.89	-$8.11 million	($0.84)	-22.77
Fanuc	$5.70 billion	6.52	$1.10 billion	$0.62	30.48

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

Profitability

This table compares Mayville Engineering and Fanuc’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%
Fanuc	20.11%	9.60%	8.65%

Summary

Fanuc beats Mayville Engineering on 10 of the 15 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 Fanuc

FANUC Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive system, an open platform for the manufacturing industry. FANUC Corporation was incorporated in 1950 and is headquartered in Yamanashi, Japan.