Top 5 Mid-Cap Stocks: Landauer, Strayer - TheStreet

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The following mid-cap companies have market values of $500 million to $10 billion and receive "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. The stocks are ordered by their potential to appreciate.

Landauer

(LDR)

offers personnel radiation monitoring to measure the dosage of X-rays, gamma radiation and other penetrating ionizing radiation.

The numbers:

Fiscal second-quarter revenue increased 5% to $25 million as net income and earnings per share fell 16% to $5.4 million and 58 cents, respectively. Operating margin remained steady 42% and net margin fell to 22%. The company has no debt or interest expenses, and a quick ratio of 1.9 indicates ample liquidity.

The stock:

Landauer has fallen 10% in 2009, underperforming the

Dow Jones Industrial Average

and the

S&P 500

. The stock offers a 3.2% dividend yield and trades at a price-to-earnings ratio around 27.

New Jersey Resources

(NJR) - Get Report

is an energy-services company that provides retail and wholesale energy services to customers in New Jersey and other states from the Gulf Coast to New England and Canada.

The numbers:

Fiscal second-quarter revenue declined 20% to $938 million as net income and earnings per share surged 183% to $36 million and 83 cents, respectively. Margins improved a bit during the quarter as operating margin inched up to 6.2% and net margin climbed to 3.8%. The debt-to-equity ratio remained low at 0.6, but a quick ratio of 0.4 indicates a weak cash position.

The stock:

New Jersey Resources has fallen 4% in 2009, in line with the Dow. The stock trades at a price-to-earnings ratio of 14 and offers an attractive 3.3% dividend yield.

Strayer Education

(STRA) - Get Report

is a for-profit post-secondary education company that offers a variety of academic programs through Strayer University.

The numbers:

First-quarter revenue increased 28% to $125 million as net income jumped 24% to $29 million and earnings per share improved 26% to $2.07. Operating margin stood at 38% and net margin remained strong at 23%. Strayer has no debt and a quick ratio of 1.5, indicating an ideal financial position.

The stock:

Strayer has fallen 7% in 2009, underperforming the Dow and S&P 500. The stock is trading at a price-to-earnings ratio of 33. A 1% dividend yield sweetens the stock, but is below the S&P 500 average.

National Presto Industries

(NPK) - Get Report

manufactures small appliances, and defense and absorbent products.

The numbers:

First-quarter revenue increased 40% to $108 million as net income and earnings per share ascended 74% to $11 million and $1.58, respectively. Operating margin improved to 14% and net margin remained steady at 10%. The company has no debt or interest expenses but has abundant cash reserves, as reflected by a quick ratio of 3.6.

The stock:

National Presto is up 2% in 2009, outperforming the Dow and the S&P 500. The stock trades at a price-to-earnings ratio of 11 and offers a meager 1.3% dividend yield.

Quality Systems

(QSII)

develops and markets health-care information systems that automate medical and dental practices and networks of practices.

The numbers:

Fiscal fourth-quarter revenue rose 28% to $66 million as net income inched up 1% to $11.4 million and earnings per share fell 2% to 40 cents. Operating margin fell to 28% and net margin declined to 17%. The company has no debt or interest expenses and a strong cash balance, as indicated by a quick ratio of 2.1.

The stock:

Quality Systems has climbed 24% in 2009, outperforming all major U.S. indexes. The stock trades at an expensive price-to-earnings ratio of 33 and offers a dividend yield of 2.2%.

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. Each rating is derived from a variety of fundamental and pricing figures and represents our opinion of risk-adjusted performance relative to a 5,000+ stock coverage universe. However, the rating does not incorporate all factors that can alter a stock's performance, such as corporate or industry events, technology innovations and shifts in competitive dynamics.