Mistras Group Inc (MG) vs NLI Holdings, Inc. (NL)

Mistras Group Inc and NLI Holdings, Inc. are both Security & Protection Services companies. Mistras Group Inc is the larger, with a market value of $641.8M against $347.2M — 1.8× the size. NLI Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Mistras Group Inc trades at 30.7×. Mistras Group Inc grew revenue faster over the last twelve months: 4.61% against 4.32%. Mistras Group Inc has the higher net margin (2.78% vs −2.98%) and the higher return on invested capital (6.69% vs 2.60%). Across the 20 metrics below, Mistras Group Inc leads on 12 and NLI Holdings, Inc. on 8.

Valuation

Metric MG NL Security & Protection Services median
P/E 30.69 n/m 22.53
P/S 0.86 1.99 1.17
P/B 2.59 0.84 2.09
Price to free cash flow 21.09 34.38 19.49
EV/EBITDA 10.44 11.17 11.17
EV/Sales 1.09 1.33 1.97
Earnings yield 3.26% (1.48%) 3.26%
Free cash flow yield 4.74% 2.91% 1.46%

Profitability

Metric MG NL Security & Protection Services median
Gross margin 28.69% 32.50% 38.10%
Operating margin 6.07% 9.80% 9.80%
Net margin 2.78% (2.98%) 2.88%
Free cash flow margin 4.07% 5.79% 0.00%
Return on equity 8.74% (1.26%) 8.74%
Return on assets 3.49% (1.00%) 1.21%
Return on invested capital 6.69% 2.60% 1.98%

Growth

Metric MG NL Security & Protection Services median
Revenue growth (TTM) 4.61% 4.32% 7.23%
EPS growth (last fiscal year) (11.67%) (155.80%) 35.69%
Revenue growth, 5-year CAGR 4.09% 6.68% 7.09%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MG NL Security & Protection Services median
Debt to equity 0.79 0.00 0.20
Current ratio 1.74 7.25 1.92
Net debt to EBITDA 2.34 (7.90) 1.55

Dividend

Metric MG NL Security & Protection Services median
Dividend yield — 5.78% 1.65%
Payout ratio — — 0.28

Size

Metric MG NL Security & Protection Services median
Market cap 641.80m 347.18m 408.73m

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