Analyzing Exro Technologies (OTCMKTS:EXROF) and Mistras Group (NYSE:MG)

Exro Technologies (OTCMKTS:EXROF) and Mistras Group (NYSE:MG) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

74.9% of Mistras Group shares are held by institutional investors. 7.1% of Mistras Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Exro Technologies and Mistras Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exro Technologies	$16.84 million	0.01	-$210.86 million	($0.47)	0.00
Mistras Group	$724.02 million	0.76	$16.84 million	$0.70	24.69

Mistras Group has higher revenue and earnings than Exro Technologies. Exro Technologies is trading at a lower price-to-earnings ratio than Mistras Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Exro Technologies and Mistras Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exro Technologies	1	0	0	0	1.00
Mistras Group	0	2	1	0	2.33

Mistras Group has a consensus target price of $19.00, indicating a potential upside of 9.95%. Given Mistras Group’s stronger consensus rating and higher possible upside, analysts plainly believe Mistras Group is more favorable than Exro Technologies.

Risk and Volatility

Exro Technologies has a beta of 5.6, meaning that its share price is 460% more volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Exro Technologies and Mistras Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exro Technologies	N/A	N/A	N/A
Mistras Group	3.06%	13.60%	5.35%

Summary

Mistras Group beats Exro Technologies on 13 of the 14 factors compared between the two stocks.

About Exro Technologies

Exro Technologies Inc. focuses on developing generation power-control electronics in Canada. The company offers Exro Coil Driver, which allows the motor to switch between different operational profiles in real-time, as well as have multiple gears for scooters, electric bikes, recreational, light electric cars, motorcycles, fleet vans, electric buses, passenger vehicles, long-haul trucks, and industrial vehicles markets; and Exro Cell Driver, a stationary energy storage system for commercial and industrial energy storage applications. It also provides electric vehicle consulting and engineering services. The company was incorporated in 2014 and is headquartered in Calgary, Canada.

About Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.