MITCHAM INDUSTR/SH (NASDAQ:MIND) and McGrath RentCorp (NASDAQ:MGRC) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Risk and Volatility
MITCHAM INDUSTR/SH has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, McGrath RentCorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
This is a summary of current ratings and price targets for MITCHAM INDUSTR/SH and McGrath RentCorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
McGrath RentCorp has a consensus target price of $70.00, suggesting a potential upside of 36.11%. Given McGrath RentCorp’s higher probable upside, analysts clearly believe McGrath RentCorp is more favorable than MITCHAM INDUSTR/SH.
Earnings & Valuation
This table compares MITCHAM INDUSTR/SH and McGrath RentCorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MITCHAM INDUSTR/SH||$48.28 million||0.94||-$21.06 million||N/A||N/A|
|McGrath RentCorp||$462.03 million||2.69||$153.92 million||$2.14||24.03|
McGrath RentCorp has higher revenue and earnings than MITCHAM INDUSTR/SH.
McGrath RentCorp pays an annual dividend of $1.36 per share and has a dividend yield of 2.6%. MITCHAM INDUSTR/SH does not pay a dividend. McGrath RentCorp pays out 63.6% of its earnings in the form of a dividend. McGrath RentCorp has increased its dividend for 17 consecutive years.
Insider and Institutional Ownership
71.5% of MITCHAM INDUSTR/SH shares are owned by institutional investors. Comparatively, 83.1% of McGrath RentCorp shares are owned by institutional investors. 9.8% of MITCHAM INDUSTR/SH shares are owned by company insiders. Comparatively, 2.0% of McGrath RentCorp shares are owned by company 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.
This table compares MITCHAM INDUSTR/SH and McGrath RentCorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
McGrath RentCorp beats MITCHAM INDUSTR/SH on 11 of the 14 factors compared between the two stocks.
About MITCHAM INDUSTR/SH
Mitcham Industries, Inc., through its subsidiaries, provides technology to the oceanographic, hydrographic, defense, seismic and maritime security industries worldwide. The company operates in two segments, Marine Technology Products, and Equipment Leasing. The Marine Technology Products segment develops, manufactures, and sells proprietary products. Its products include GunLink seismic source acquisition and control systems that provide operators of marine seismic surveys with precise monitoring and control of energy sources; BuoyLink RGPS tracking systems, which are used to offer precise positioning of marine seismic energy sources and streamers; Digishot energy source controllers; Sleeve Gun energy sources; and SeaLink product line of marine sensors and solid streamer systems. This segment also provides streamer weight collars, depth and pressure transducers, air control valves, and source array systems; spare and replacement parts; repair services, engineering services, training, field service operations, and umbilical termination; and equipment, consumables, systems integration, engineering hardware, and software maintenance support services. The Equipment Leasing segment leases seismic equipment for short-term primarily to seismic data acquisition contractors and oil field service providers. This segment is also involved in the sale of other seismic equipment of other manufacturers; and used equipment from its lease pool. Mitcham Industries, Inc. was founded in 1987 and is headquartered in Huntsville, Texas.
About McGrath RentCorp
McGrath RentCorp, a business to business rental company, rents and sells relocatable modular buildings, portable storage containers, electronic test equipment, and liquid and solid containment tanks and boxes in the United States and internationally. It operates through four segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex. The Mobile Modular segment rents and sells modular buildings designed for use as classrooms, temporary offices adjacent to existing facilities, sales offices, construction field offices, restroom buildings, health care clinics, child care facilities, office spaces, and various other purposes; and portable storage containers. The TRS-RenTelco segment rents and sells general purpose electronic test equipment, such as oscilloscopes, amplifiers, analyzers, signal source, and power source test equipment primarily to aerospace, defense, electronics, industrial, research, and semiconductor industries. This segment also provides communications test equipment comprising network and transmission test equipment for various fiber, copper, and wireless networks to the manufacturers of communications equipment and products, electrical and communications installation contractors, field technicians, and service providers. The Adler Tanks segment rents fixed axle steel tanks for storing groundwater, wastewater, volatile organic liquids, sewage, slurry and bio sludge, oil and water mixtures, and chemicals; vacuum containers for sludge and solid materials; dewatering boxes for the separation of water contained in sludge and slurry; and roll-off and trash boxes for temporary storage and transportation of solid waste. The Enviroplex segment manufactures and sells modular and portable classrooms directly to public school districts and other educational institutions in California. McGrath RentCorp was founded in 1979 and is headquartered in Livermore, California.
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