Myers Industries (NYSE:MYE) versus Proto Labs (NYSE:PRLB) Critical Analysis

Proto Labs (NYSE:PRLB) and Myers Industries (NYSE:MYE) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

84.5% of Proto Labs shares are held by institutional investors. Comparatively, 90.8% of Myers Industries shares are held by institutional investors. 1.7% of Proto Labs shares are held by insiders. Comparatively, 1.9% of Myers Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Proto Labs and Myers Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Proto Labs	$500.89 million	1.93	$16.59 million	$0.60	67.87
Myers Industries	$836.28 million	0.70	$7.20 million	$0.28	55.75

Proto Labs has higher earnings, but lower revenue than Myers Industries. Myers Industries is trading at a lower price-to-earnings ratio than Proto Labs, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Proto Labs has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Myers Industries has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Proto Labs and Myers Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Proto Labs	0	2	1	0	2.33
Myers Industries	0	0	1	0	3.00

Proto Labs currently has a consensus price target of $43.00, suggesting a potential upside of 5.60%. Myers Industries has a consensus price target of $21.00, suggesting a potential upside of 34.53%. Given Myers Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Myers Industries is more favorable than Proto Labs.

Profitability

This table compares Proto Labs and Myers Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Proto Labs	2.99%	2.22%	1.99%
Myers Industries	1.26%	14.02%	4.38%

Summary

Myers Industries beats Proto Labs on 7 of the 13 factors compared between the two stocks.

About Proto Labs

Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.

About Myers Industries

Myers Industries, Inc. engages in distribution of tire service supplies in Ohio. It operates through two segments, The Material Handling and Distribution. The Material Handling segment offers pallets, small parts bins, bulk shipping containers, and OEM parts, as well as storage and organization, and custom plastic products; and injection molded, rotationally molded or blow molded products, consumer fuel containers and tanks for water, fuel, and waste handling. It serves industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational and marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer markets, and other markets under Akro-Mils, Jamco, Buckhorn, Ameri-Kart, Scepter, Elkhart Plastics, Trilogy Plastics, and Signature Systems brands directly to end-users, as well as through distributors. The Distribution segment engages in the distribution of tools, equipment, and supplies for tire, wheel, and under-vehicle service on passenger, heavy truck, and off-road vehicles; and manufacture and sale of tire repair materials and custom rubber products, as well as reflective highway marking tapes under the Myers Tire Supply, Myers Tire Supply International, Tuffy Manufacturing, Mohawk Rubber Sales, Patch Rubber Company, Elrick, Fleetline, MTS, Seymoure, Advance Traffic Markings, and MXP brands. This segment serves retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire re-treaders, truck stop operations, and government agencies. Myers Industries, Inc. was founded in 1933 and is headquartered in Akron, Ohio.