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 $658.6M against $330.1M — 2.0× the size. NLI Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Mistras Group Inc trades at 25.0×. NLI Holdings, Inc. grew revenue faster over the last twelve months: 5.96% against 5.23%. Mistras Group Inc has the higher net margin (3.65% vs −15.8%) and the higher return on invested capital (7.73% vs 3.44%). Across the 20 metrics below, Mistras Group Inc leads on 11 and NLI Holdings, Inc. on 9.

Valuation

Metric MG NL Security & Protection Services median
P/E 24.95 n/m 22.21
P/S 0.92 2.00 1.12
P/B 2.84 0.85 2.11
Price to free cash flow 23.76 39.99 20.05
EV/EBITDA 10.33 11.61 11.50
EV/Sales 1.15 1.33 2.08
Earnings yield 4.01% (7.84%) 2.19%
Free cash flow yield 4.21% 2.50% 2.44%

Profitability

Metric MG NL Security & Protection Services median
Gross margin 28.53% 32.08% 41.45%
Operating margin 6.87% 9.25% 8.06%
Net margin 3.65% (15.79%) 3.11%
Free cash flow margin 3.89% 5.01% 1.45%
Return on equity 11.82% (6.40%) 5.40%
Return on assets 4.67% (5.14%) 1.07%
Return on invested capital 7.73% 3.44% 2.40%

Growth

Metric MG NL Security & Protection Services median
Revenue growth (TTM) 5.23% 5.96% 6.22%
EPS growth (last fiscal year) (11.67%) (155.80%) 29.52%
Revenue growth, 5-year CAGR 4.09% 6.68% 7.35%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MG NL Security & Protection Services median
Debt to equity 0.80 0.00 0.20
Current ratio 1.71 9.02 1.93
Net debt to EBITDA 2.34 (7.90) 1.55

Dividend

Metric MG NL Security & Protection Services median
Dividend yield — 5.88% 1.72%
Payout ratio — — 0.28

Size

Metric MG NL Security & Protection Services median
Market cap 658.55m 330.07m 394.99m

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