Critical Analysis: Mitie Group (MITFF) versus The Competition

Mitie Group (OTCMKTS:MITFF) is one of 355 publicly-traded companies in the “Commercial Services & Supplies” industry, but how does it weigh in compared to its peers? We will compare Mitie Group to related companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Dividends

Mitie Group pays an annual dividend of $0.11 per share and has a dividend yield of 3.9%. Mitie Group pays out 317.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 64.2% of their earnings in the form of a dividend.

Insider and Institutional Ownership

54.6% of Mitie Group shares are owned by institutional investors. Comparatively, 39.6% of shares of all “Commercial Services & Supplies” companies are owned by institutional investors. 16.7% of shares of all “Commercial Services & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Mitie Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitie Group	N/A	N/A	N/A
Mitie Group Competitors	-58.22%	-118.49%	-1.29%

Analyst Ratings

This is a breakdown of recent recommendations for Mitie Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitie Group	0	2	1	0	2.33
Mitie Group Competitors	1839	6118	9005	657	2.48

As a group, “Commercial Services & Supplies” companies have a potential upside of 10.93%. Given Mitie Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe Mitie Group has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Mitie Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mitie Group	N/A	N/A	81.60
Mitie Group Competitors	$2.45 billion	$140.19 million	16.34

Mitie Group’s peers have higher revenue and earnings than Mitie Group. Mitie Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Mitie Group peers beat Mitie Group on 7 of the 13 factors compared.

About Mitie Group

Mitie Group plc, together with its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. The company operates in eight segments: Business Services, Technical Services, Central Government & Defense (CG&D), Communities, Care & Custody, Landscapes, Waste, and Spain. The company provides security services, such as manned guarding and technology-backed monitoring solutions, and fire and security systems installations; and general, specialist, and technical cleaning services in offices, buildings, transport and logistics hubs, and high-security environments. It is also involved in the provision of technology-backed engineering; maintenance, repair, and mechanical and electrical project activities; energy, carbon, and water management services; air conditioning and disinfection solutions; telecoms and energy services; and remote asset monitoring and digital workplace solutions. In addition, the company provides facilities management services across central government and defense contracts; decarbonization solutions; and engineering services. Further, it offers integrated facilities management services to public sector customers, which focuses on community environments in healthcare, schools and universities, emergency services, and local authorities; portering services; public services in immigration, criminal justice, and healthcare; horticultural and winter landscaping services; and waste reduction and treatment solutions. The company was incorporated in 1936 and is headquartered in London, the United Kingdom.