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MEC vs QUAD

MEC
Mayville Engineering Company, Inc.
BEARISH
Price
$21.83
Market Cap
$443.6M
Sector
Industrials
AI Confidence
80%
QUAD
Quad/Graphics, Inc.
NEUTRAL
Price
$8.43
Market Cap
$434.6M
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
MEC
--
QUAD
14.53
Forward P/E
MEC
17.12
QUAD
6.28
P/B Ratio
MEC
1.84
QUAD
3.34
P/S Ratio
MEC
0.81
QUAD
0.18
EV/EBITDA
MEC
16.09
QUAD
4.92

Profitability

Gross Margin
MEC
11.51%
QUAD
21.79%
Operating Margin
MEC
-4.64%
QUAD
4.53%
Profit Margin
MEC
-1.48%
QUAD
1.16%
ROE
MEC
-3.29%
QUAD
25.61%
ROA
MEC
0.13%
QUAD
5.31%

Growth

Revenue Growth
MEC
10.7%
QUAD
-7.7%
Earnings Growth
MEC
--
QUAD
18.2%

Financial Health

Debt/Equity
MEC
0.99
QUAD
3.98
Current Ratio
MEC
1.72
QUAD
0.94
Quick Ratio
MEC
0.85
QUAD
0.57

Dividends

Dividend Yield
MEC
--
QUAD
4.74%
Payout Ratio
MEC
0.0%
QUAD
56.03%

AI Verdict

MEC BEARISH

MEC exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and deteriorating operational efficiency. Despite a 'Strong Buy' analyst consensus and positive revenue growth of 10.7%, the company is currently unprofitable with negative profit (-1.48%) and operating margins (-4.64%). The disconnect between the strong 1-year price performance (+73.5%) and the underlying financial decay is further exacerbated by bearish insider selling and a failing technical trend score. The company is essentially growing its top line while eroding its bottom line.

Strengths
Consistent revenue growth (10.7% YoY)
Low Price-to-Sales ratio (0.81) suggesting potential undervaluation relative to revenue
Strong 1-year price appreciation (+73.5%)
Risks
Critical financial health failure (Piotroski F-Score 2/9)
Negative profitability (Profit Margin -1.48%, ROE -3.29%)
Declining earnings growth (-14.3% YoY)
QUAD NEUTRAL

QUAD presents a classic 'value trap' profile, characterized by a stable Piotroski F-Score of 4/9 and a precarious balance sheet. While the company is deeply undervalued on a Price-to-Sales (0.18) and Forward P/E (6.28) basis, this is offset by a concerning Debt/Equity ratio of 3.98 and a Current Ratio below 1.0 (0.94), indicating liquidity risks. Earnings are growing despite a consistent decline in top-line revenue, suggesting efficiency gains rather than organic growth. The stock trades significantly above its Graham Number ($5.74) but well below its growth-based intrinsic value ($17.11).

Strengths
Extremely low valuation multiples (P/S 0.18, Forward P/E 6.28)
Strong earnings growth (YoY +18.20%) despite revenue headwinds
Attractive dividend yield of 4.74% with a sustainable payout ratio (56.03%)
Risks
High financial leverage with a Debt/Equity ratio of 3.98
Poor short-term liquidity (Current Ratio 0.94, Quick Ratio 0.57)
Negative revenue growth trend (YoY -7.70%)

Compare Another Pair

MEC vs QUAD: Head-to-Head Comparison

This page compares Mayville Engineering Company, Inc. (MEC) and Quad/Graphics, Inc. (QUAD) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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