Morgan Advanced Materials (MGAM) Competitors

Bodycote (LON:BOY) and Morgan Advanced Materials (LON:MGAM) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, media sentiment, analyst recommendations and valuation.

Which has stronger earnings & valuation, BOY or MGAM?

Morgan Advanced Materials has higher revenue and earnings than Bodycote. Morgan Advanced Materials is trading at a lower price-to-earnings ratio than Bodycote, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bodycote	£739.54M	1.44	£59.25M	£33.23	17.90
Morgan Advanced Materials	£1.11B	0.58	£68.49M	£24.30	9.48

Do analysts recommend BOY or MGAM?

Bodycote presently has a consensus target price of GBX 756.67, suggesting a potential upside of 27.17%. Morgan Advanced Materials has a consensus target price of GBX 305, suggesting a potential upside of 32.36%. Given Morgan Advanced Materials' stronger consensus rating and higher possible upside, analysts clearly believe Morgan Advanced Materials is more favorable than Bodycote.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bodycote	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33
Morgan Advanced Materials	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Is BOY or MGAM more profitable?

Bodycote has a net margin of 8.01% compared to Morgan Advanced Materials' net margin of 6.17%. Morgan Advanced Materials' return on equity of 19.02% beat Bodycote's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bodycote	8.01%	8.14%	6.41%
Morgan Advanced Materials	6.17%	19.02%	8.24%

Do insiders & institutionals believe in BOY or MGAM?

77.7% of Bodycote shares are held by institutional investors. Comparatively, 87.6% of Morgan Advanced Materials shares are held by institutional investors. 2.3% of Bodycote shares are held by company insiders. Comparatively, 1.7% of Morgan Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Does the media refer more to BOY or MGAM?

In the previous week, Morgan Advanced Materials had 2 more articles in the media than Bodycote. MarketBeat recorded 2 mentions for Morgan Advanced Materials and 0 mentions for Bodycote. Morgan Advanced Materials' average media sentiment score of 0.77 beat Bodycote's score of 0.00 indicating that Morgan Advanced Materials is being referred to more favorably in the news media.

Company	Overall Sentiment
Bodycote	Neutral
Morgan Advanced Materials	Positive

Which has more risk and volatility, BOY or MGAM?

Bodycote has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Morgan Advanced Materials has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Is BOY or MGAM a better dividend stock?

Bodycote pays an annual dividend of GBX 23 per share and has a dividend yield of 3.9%. Morgan Advanced Materials pays an annual dividend of GBX 12 per share and has a dividend yield of 5.2%. Bodycote pays out 69.2% of its earnings in the form of a dividend. Morgan Advanced Materials pays out 49.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Morgan Advanced Materials is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Morgan Advanced Materials beats Bodycote on 13 of the 18 factors compared between the two stocks.