Head-To-Head Analysis: Atlas Technical Consultants (NASDAQ:ATCX) vs. Mastech Digital (NYSE:MHH)

Atlas Technical Consultants (NASDAQ:ATCX) and Mastech Digital (NYSE:MHH) are both small-cap construction companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Atlas Technical Consultants has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Mastech Digital has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

28.1% of Atlas Technical Consultants shares are held by institutional investors. Comparatively, 18.4% of Mastech Digital shares are held by institutional investors. 3.9% of Atlas Technical Consultants shares are held by company insiders. Comparatively, 42.9% of Mastech Digital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Atlas Technical Consultants and Mastech Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Technical Consultants	1	1	3	0	2.40
Mastech Digital	0	0	0	0	0.00

Atlas Technical Consultants currently has a consensus target price of $27.88, indicating a potential upside of 548.26%. Given Atlas Technical Consultants’ stronger consensus rating and higher possible upside, equities analysts plainly believe Atlas Technical Consultants is more favorable than Mastech Digital.

Profitability

This table compares Atlas Technical Consultants and Mastech Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Technical Consultants	-1.24%	-13.06%	3.37%
Mastech Digital	1.71%	8.20%	6.36%

Valuation and Earnings

This table compares Atlas Technical Consultants and Mastech Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Technical Consultants	$604.77 million	0.02	-$7.51 million	N/A	N/A
Mastech Digital	$184.14 million	0.40	-$7.14 million	$0.19	32.68

Mastech Digital has lower revenue, but higher earnings than Atlas Technical Consultants.

Summary

Mastech Digital beats Atlas Technical Consultants on 7 of the 13 factors compared between the two stocks.

About Atlas Technical Consultants

Atlas Technical Consultants, Inc. provides professional testing, inspection, engineering, environmental, and program management and consulting services in the United States. The company provides a range of technical services that helps its clients test, inspect, plan, design, certify, and manage various projects across various end markets. It offers testing, inspection, and certification services, such as construction materials testing; non-destructive testing and evaluations, materials testing and inspection, laboratory, and geophysics; construction quality assurance; owner verification and inspection; forensic and structural investigations; and materials laboratory services. The company also provides environmental services, including environmental permitting, compliance assistance, and auditing and compliance management system implementation; air quality; water, hazardous material permitting, and registration; underground storage tank management; leak detection and repair program management; water resource management; industrial hygiene and building science; and disaster response and recovery. In addition, it offers engineering and design services comprising civil site, transportation, and geotechnical engineering; hydrogeology; water/wastewater; solid waste/landfill; land acquisition; subsurface utility engineering; surveying and mapping; and geographic information system asset inventory and assessments. Further, the company offers program management/construction management/quality management services consisting of programmatic planning and phasing; contract document preparation; bid evaluation and award analysis; alternative/value engineering; project estimating and scheduling; project cost/schedule control; contract administration; project management; community relations/affairs; asset management; construction management; quality management and assurance; and construction engineering and inspection. The company is headquartered in Austin, Texas.

About Mastech Digital

Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States. The company operates through Data and Analytics Services and IT Staffing Services segments. It offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. In addition, the company provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. Further, it offers digital transformation services, including digital learning services; and cloud-based enterprise application across sales, marketing, and customer service organizations. The company provides its services across various industry verticals, such as financial services, retail, healthcare, manufacturing, government, telecommunications, and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.