Comparing Sims Metal Management (OTCMKTS:SMSMY) and Montrose Environmental Group (NYSE:MEG)

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

Institutional & Insider Ownership

87.9% of Montrose Environmental Group shares are owned by institutional investors. 11.9% of Montrose Environmental Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Sims Metal Management and Montrose Environmental Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sims Metal Management	N/A	N/A	N/A
Montrose Environmental Group	-2.52%	0.17%	0.08%

Valuation & Earnings

This table compares Sims Metal Management and Montrose Environmental Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sims Metal Management	$4.85 billion	0.41	-$12.30 million	N/A	N/A
Montrose Environmental Group	$696.40 million	1.32	-$62.31 million	($0.91)	-28.52

Sims Metal Management has higher revenue and earnings than Montrose Environmental Group.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sims Metal Management and Montrose Environmental Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sims Metal Management	1	0	0	0	1.00
Montrose Environmental Group	1	2	4	0	2.43

Montrose Environmental Group has a consensus price target of $34.40, suggesting a potential upside of 32.56%. Given Montrose Environmental Group’s stronger consensus rating and higher possible upside, analysts plainly believe Montrose Environmental Group is more favorable than Sims Metal Management.

Risk & Volatility

Sims Metal Management has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Summary

Montrose Environmental Group beats Sims Metal Management on 9 of the 12 factors compared between the two stocks.

About Sims Metal Management

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, Bangladesh, China, Turkey, the United States, and internationally. The company operates through six segments: North America Metals, Investment in SA Recycling, Australia/New Zealand Metals, UK Metals, Global Trading, and Sims Lifecycle Services. It is involved in the collection, processing, and trading of iron and steel secondary raw materials; and other metal alloys and residues, principally aluminum, lead, copper, zinc, and nickel bearing materials. The company also engages in the provision of environmentally responsible solutions for the disposal of post-consumer electronic products, such as information technology assets recycled for commercial customers; and environmentally responsible recycling of negative value materials, including electronic equipment. In addition, it provides secondary processing and other services comprising recycling of municipal curbside materials, stevedoring, and other sources of service. The company was founded in 1917 and is headquartered in Mascot, Australia.

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.