Insteel Industries, Inc. (IIIN) vs Mayville Engineering Company, Inc. (MEC)

Insteel Industries, Inc. and Mayville Engineering Company, Inc. are both Metal Fabrication companies. Insteel Industries, Inc. is the larger, with a market value of $563.9M against $427.6M — 1.3× the size. Mayville Engineering Company, Inc. has negative trailing earnings, so its P/E is not meaningful; Insteel Industries, Inc. trades at 15.8×. Insteel Industries, Inc. grew revenue faster over the last twelve months: 17.1% against 11.8%. Insteel Industries, Inc. has the higher net margin (5.14% vs −2.95%) and the higher return on invested capital (8.33% vs −1.78%). Across the 20 metrics below, Insteel Industries, Inc. leads on 17 and Mayville Engineering Company, Inc. on 3.

Valuation

Metric IIIN MEC Metal Fabrication median
P/E 15.76 n/m 17.15
P/S 0.81 0.67 1.14
P/B 1.54 1.20 1.71
Price to free cash flow n/m n/m 22.10
EV/EBITDA 8.55 16.49 17.60
EV/Sales 0.78 0.89 1.96
Earnings yield 6.34% (4.88%) 2.28%
Free cash flow yield (1.09%) (1.15%) 0.92%

Profitability

Metric IIIN MEC Metal Fabrication median
Gross margin 11.77% 9.16% 21.08%
Operating margin 6.56% (2.18%) 5.14%
Net margin 5.14% (2.95%) 4.70%
Free cash flow margin (0.68%) (0.77%) 1.45%
Return on equity 10.00% (6.05%) 0.00%
Return on assets 7.69% (3.39%) 1.56%
Return on invested capital 8.33% (1.78%) 2.19%

Growth

Metric IIIN MEC Metal Fabrication median
Revenue growth (TTM) 17.06% 11.77% 9.93%
EPS growth (last fiscal year) 112.12% (132.26%) —
Revenue growth, 5-year CAGR 6.51% 8.85% 6.12%
Net income growth, 5-year CAGR 16.63% 0.00% 0.00%

Health

Metric IIIN MEC Metal Fabrication median
Debt to equity 0.00 0.39 0.30
Current ratio 3.57 1.70 2.08
Net debt to EBITDA (0.55) 5.37 1.02

Dividend

Metric IIIN MEC Metal Fabrication median
Dividend yield 7.28% — 1.69%
Payout ratio 0.05 0.00 0.06

Size

Metric IIIN MEC Metal Fabrication median
Market cap 563.91m 427.64m 896.96m

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