Head-To-Head Review: NV5 (NVEE) and Ascent Capital Group (ASCMA)

NV5 (NASDAQ: NVEE) and Ascent Capital Group (NASDAQ:ASCMA) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Volatility and Risk

NV5 has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Ascent Capital Group has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.



Profitability

This table compares NV5 and Ascent Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NV5 7.21% 15.89% 9.18%
Ascent Capital Group -19.43% -62.29% -5.12%

Institutional & Insider Ownership

56.2% of NV5 shares are owned by institutional investors. Comparatively, 85.4% of Ascent Capital Group shares are owned by institutional investors. 26.0% of NV5 shares are owned by company insiders. Comparatively, 10.2% of Ascent Capital Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares NV5 and Ascent Capital Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NV5 $333.03 million 2.03 $24.00 million $2.38 26.24
Ascent Capital Group $553.46 million 0.09 -$107.55 million ($8.83) -0.45

NV5 has higher earnings, but lower revenue than Ascent Capital Group. Ascent Capital Group is trading at a lower price-to-earnings ratio than NV5, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for NV5 and Ascent Capital Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NV5 0 1 3 0 2.75
Ascent Capital Group 0 2 1 0 2.33

NV5 currently has a consensus target price of $58.00, suggesting a potential downside of 7.13%. Ascent Capital Group has a consensus target price of $11.67, suggesting a potential upside of 196.11%. Given Ascent Capital Group’s higher probable upside, analysts plainly believe Ascent Capital Group is more favorable than NV5.

Summary

NV5 beats Ascent Capital Group on 10 of the 14 factors compared between the two stocks.

About NV5

NV5 Global, Inc. provides professional and technical engineering and consulting services to public and private sector clients in the infrastructure, energy, construction, real estate, and environmental markets in the United States and internationally. It operates through two segments, Infrastructure; and Building, Technology & Sciences. The company offers site selection and planning, design, water resources, transportation, structural engineering, land development, surveying, power delivery, building code compliance, and other services; and construction materials testing and engineering, geotechnical engineering and consulting, and forensic consulting services. It also provides governmental outsourcing and consulting, and technical outsourcing services, as well as building program management services. In addition, the company offers mechanical, electrical, and plumbing design services; commissioning services; energy performance, management, and optimization services; acoustical design consulting services; and audiovisual?security and surveillance?information technology?data center services, as well as energy services. Further, it provides various services, such as investigating and analyzing environmental conditions, and recommending corrective measures and procedures; occupational health and safety services; hydrogeological modeling and environmental programs; water resource planning, monitoring, and environmental management of wastewater facilities; solid waste landfill investigations; permitting and compliance; storm water pollution; environmental impact statement support; agricultural waste management and permitting; and wetland evaluations. The company was formerly known as NV5 Holdings, Inc. and changed its name to NV5 Global, Inc. in December 2015. NV5 Global, Inc. was founded in 1949 and is headquartered in Hollywood, Florida.

About Ascent Capital Group

Ascent Capital Group, Inc., through its subsidiary, Monitronics International, Inc., provides security alarm monitoring services to residential and commercial customers in the United States, Canada, the District of Columbia, and Puerto Rico. The company provides monitoring services for alarm signals arising from burglaries, fires, medical alerts, and other events through security systems at customers' premises. It also offers home automation services, including remote activation and control of security systems, support for video monitoring, flood sensors, automated garage door and door lock capabilities, and thermostat integration; hands-free two-way interactive voice communication between its monitoring center and customers; and customer service and technical support related to home monitoring systems and home automation services. The company also provides maintenance and wholesale contract monitoring services to other security alarm companies. It markets and sells its products through a network of authorized dealers. The company was formerly known as Ascent Media Corporation and changed its name to Ascent Capital Group, Inc. in July 2011. Ascent Capital Group, Inc. was incorporated in 2008 and is based in Greenwood Village, Colorado.

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