Critical Comparison: CECO Environmental (NASDAQ:CECO) & Mueller Industries (NYSE:MLI)

CECO Environmental (NASDAQ:CECO – Get Free Report) and Mueller Industries (NYSE:MLI – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares CECO Environmental and Mueller Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CECO Environmental -3.39% 7.36% 3.41%
Mueller Industries 18.25% 25.68% 21.80%

Analyst Ratings

This is a breakdown of recent ratings and price targets for CECO Environmental and Mueller Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CECO Environmental 1 1 8 0 2.70
Mueller Industries 0 0 2 0 3.00

CECO Environmental currently has a consensus price target of $104.88, suggesting a potential upside of 42.38%. Mueller Industries has a consensus price target of $75.00, suggesting a potential upside of 19.84%. Given CECO Environmental’s higher possible upside, analysts plainly believe CECO Environmental is more favorable than Mueller Industries.

Insider & Institutional Ownership

68.1% of CECO Environmental shares are held by institutional investors. Comparatively, 94.5% of Mueller Industries shares are held by institutional investors. 18.4% of CECO Environmental shares are held by company insiders. Comparatively, 2.3% of Mueller Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

CECO Environmental has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Mueller Industries has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Earnings & Valuation

This table compares CECO Environmental and Mueller Industries”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CECO Environmental $774.38 million 5.57 $50.05 million ($0.69) -106.75
Mueller Industries $4.18 billion 3.31 $765.19 million $3.84 16.30

Mueller Industries has higher revenue and earnings than CECO Environmental. CECO Environmental is trading at a lower price-to-earnings ratio than Mueller Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Mueller Industries beats CECO Environmental on 9 of the 14 factors compared between the two stocks.

About CECO Environmental

(Get Free Report)

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.

About Mueller Industries

(Get Free Report)

Mueller Industries, Inc. manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, South Korea, the Middle East, China, and Mexico. It operates through three segments: Piping Systems, Industrial Metals, and Climate. The Piping Systems segment offers copper tubes, fittings, line sets, and pipe nipples. It also resells steel pipes, brass and plastic plumbing valves, malleable iron fittings and faucets, and plumbing specialties; and supplies water tubes. This segment sells its products to wholesalers in the plumbing and refrigeration markets, distributors to the manufactured housing and recreational vehicle industries, building material retailers, and air-conditioning original equipment manufacturers (OEMs). The Industrial Metals segment manufactures brass, bronze, and copper alloy rods; plumbing brass, valves, fittings, and gas assemblies; cold-form aluminum and copper products; machining of aluminum, steel, brass, and cast iron impacts and castings; brass and aluminum forgings; brass, aluminum, and stainless-steel valves; fluid control solutions; and gas train assembles to OEMs in the industrial, construction, HVAC, plumbing, and refrigeration markets. The Climate segment offers valves, protection devices, and brass fittings for various OEMs in the commercial HVAC and refrigeration markets; high-pressure components and accessories for the air-conditioning and refrigeration markets; coaxial heat exchangers and twisted tubes for the HVAC, geothermal, refrigeration, swimming pool heat pump, marine, ice machine, commercial boiler, and heat reclamation markets; and insulated HVAC flexible duct systems. Mueller Industries, Inc. was founded in 1917 and is headquartered in Collierville, Tennessee.

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