Mobile Mini (NASDAQ:MINI) and McDermott International (OTCMKTS:MDRIQ) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider & Institutional Ownership

97.6% of Mobile Mini shares are held by institutional investors. Comparatively, 62.2% of McDermott International shares are held by institutional investors. 7.5% of Mobile Mini shares are held by company insiders. Comparatively, 1.0% of McDermott International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mobile Mini and McDermott International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mobile Mini $612.63 million 2.01 $83.73 million $2.02 13.74
McDermott International $8.43 billion 0.00 -$2.91 billion ($5.95) -0.01

Mobile Mini has higher earnings, but lower revenue than McDermott International. McDermott International is trading at a lower price-to-earnings ratio than Mobile Mini, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mobile Mini and McDermott International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mobile Mini 12.08% 11.52% 4.51%
McDermott International -34.50% -349.92% -10.94%

Risk & Volatility

Mobile Mini has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, McDermott International has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Mobile Mini and McDermott International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mobile Mini 0 2 4 0 2.67
McDermott International 0 0 0 0 N/A

Mobile Mini presently has a consensus price target of $40.00, suggesting a potential upside of 44.14%. Given Mobile Mini’s higher possible upside, analysts clearly believe Mobile Mini is more favorable than McDermott International.

Summary

Mobile Mini beats McDermott International on 12 of the 13 factors compared between the two stocks.

Mobile Mini Company Profile

Mobile Mini, Inc. provides portable storage and specialty containment solutions. It operates through three segments: Storage Solutions North America, Storage Solutions United Kingdom, and Tank & Pump Solutions. The company offers various portable storage and office products, including steel storage containers and steel ground level offices serving construction companies, large and small retailers, medical centers, schools, utilities, distributors, the military, hotels, restaurants, entertainment complexes, and households for application in the storage of construction materials and equipment, retail and manufacturing inventory, documents and records, and other goods. It also provides a range of specialty containment equipment, such as steel tanks, stainless steel tank trailers, and pumps and filtration equipment, as well as roll-off, vacuum, and dewatering boxes. In addition, the company offers specialty containment services comprising transportation of containers for waste management; waste management oversight and service; system design that includes assessment of pumping, filtration, and temporary storage needs; and field services to install and connect customer containment equipment. It primarily leases its specialty products for chemical, refinery, oil and natural gas drilling, mining, and environmental service customers. As of February 1, 2018, the company operated a rental fleet of approximately 195,600 storage solution containers and office units; and 12,600 units of tank and pump solutions in the United States. Its network also consisted of 154 locations in the United States, the United Kingdom, and Canada. The company was founded in 1983 and is headquartered in Phoenix, Arizona.

McDermott International Company Profile

McDermott International, Inc. provides engineering, procurement, construction and installation, and technology solutions to the energy industry worldwide. It operates through five segments: North, Central and South America; Europe, Africa, Russia and Caspian; the Middle East and North Africa; Asia Pacific; and Technology. It designs, engineers, and constructs upstream offshore oil and gas facilities, downstream oil and gas facilities and pipelines, gas-fired power plants, liquefied natural gas import and export terminals, atmospheric and refrigerated storage vessels and terminals, water storage and treatment facilities, hydrocarbon processing facilities, and refining and petrochemical facilities, as well as performs pipe and module fabrication. The company also provides gas processing, refining, petrochemical and coal gasification technologies, as well as supplies proprietary catalysts, equipment, and related engineering services. It serves national, integrated, and other oil and gas companies, as well as producers of petrochemicals and electric power. The company was founded in 1923 and is headquartered in Houston, Texas. On January 21, 2020, McDermott International, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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