Montrose Environmental Group (NYSE:MEG) and Concrete Pumping (NASDAQ:BBCP) Critical Review
by Danessa Lincoln · The Markets DailyMontrose Environmental Group (NYSE:MEG – Get Free Report) and Concrete Pumping (NASDAQ:BBCP – Get Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Valuation and Earnings
This table compares Montrose Environmental Group and Concrete Pumping”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Montrose Environmental Group | $830.54 million | 0.99 | -$840,000.00 | ($0.24) | -94.79 |
| Concrete Pumping | $392.87 million | 0.91 | $6.37 million | $0.09 | 79.00 |
Concrete Pumping has lower revenue, but higher earnings than Montrose Environmental Group. Montrose Environmental Group is trading at a lower price-to-earnings ratio than Concrete Pumping, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
87.9% of Montrose Environmental Group shares are held by institutional investors. Comparatively, 34.2% of Concrete Pumping shares are held by institutional investors. 11.9% of Montrose Environmental Group shares are held by insiders. Comparatively, 28.2% of Concrete Pumping shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Montrose Environmental Group and Concrete Pumping, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Montrose Environmental Group | 1 | 2 | 2 | 0 | 2.20 |
| Concrete Pumping | 0 | 3 | 1 | 0 | 2.25 |
Montrose Environmental Group currently has a consensus target price of $34.67, indicating a potential upside of 52.38%. Concrete Pumping has a consensus target price of $8.25, indicating a potential upside of 16.03%. Given Montrose Environmental Group’s higher probable upside, equities analysts plainly believe Montrose Environmental Group is more favorable than Concrete Pumping.
Risk and Volatility
Montrose Environmental Group has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, Concrete Pumping has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Profitability
This table compares Montrose Environmental Group and Concrete Pumping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Montrose Environmental Group | -0.10% | 4.47% | 2.06% |
| Concrete Pumping | 1.65% | 2.50% | 0.74% |
Summary
Montrose Environmental Group beats Concrete Pumping on 8 of the 14 factors compared between the two stocks.
About Montrose Environmental Group
Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.
About Concrete Pumping
Concrete Pumping Holdings, Inc. provides concrete pumping and waste management services in the United States and the United Kingdom. The company offers concrete pumping services to general contractors and concrete finishing companies in the commercial, infrastructure, and residential sectors under the Brundage-Bone and Capital Pumping brands; and industrial cleanup and containment services primarily to customers in the construction industry under the Eco-Pan brand. It leases and rents concrete pumping equipment, pans, and containers. As of October 31, 2023, the company owned a fleet of approximately 930 boom pumps, 90 placing booms, 20 telebelts, 300 stationary pumps, and 115 waste management trucks. Concrete Pumping Holdings, Inc. was founded in 1983 and is headquartered in Thornton, Colorado.