Top 5 Mid-Cap Stocks: Landauer, Strayer

TSC Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety-first" approach aims to reduce risk while achieving performance on a total return basis.

The following five mid-cap companies have market values of $500 million to $10 billion, and receive "buy" recommendations from TheStreet.com Ratings' 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 to which a person has been exposed.

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 declined 14 basis points to 42% and net margin fell 532 basis points 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 18% in 2009, underperforming the Dow Jones Industrial Average and the S&P 500. The stock offers a 3.5% dividend yield and trades at a price-to-earnings ratio of about 25.

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

The numbers: Fiscal 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 improved 162 basis points to 38% as net margin fell 89 basis points to 23%. Strayer has no debt and a quick ratio of 1.5, indicating an ideal financial position.

The stock: Strayer has fallen 6% in 2009, outperforming the Dow and underperforming the 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) makes small appliances, and defense and absorbent products.

The numbers: Fiscal 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 307 basis points to 14% and net margin climbed 195 basis points to 10%. The company has no debt or interest expenses and abundant cash reserves, as reflected by a quick ratio of 3.6.

The stock: National Presto Industries is down 1% in 2009, outperforming the Dow and the S&P 500. The stock trades at a price-to-earnings ratio of less than 11 and pays a meager 1.3% dividend yield.

New Jersey Resources ( NJR) 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 significantly during the quarter, with operating margin climbing 443 basis points to 6.2% and net margin jumping 272 basis points 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 7% in 2009, in line with the DJIA. The stock trades at a price-to-earnings ratio of 13 and offers an attractive 3.4% dividend yield.

Quality Systems ( QSII) develops and markets health care information systems for doctors and dentists.

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 521 basis points to 28% and net margin declined 470 basis points 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 18% in 2009, outperforming all major U.S. indexes. The stock trades at a price-to-earnings ratio of 32 and pays a dividend yield of 2.3%.

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A rating can be viewed for any stock through our screener stock rating screener. 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.

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