Reviewing Terravia Holdings (TVIA) & Ecolab (ECL)

Terravia Holdings (NASDAQ: TVIA) and Ecolab (NYSE:ECL) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Terravia Holdings and Ecolab’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terravia Holdings -413.48% N/A -61.89%
Ecolab 9.66% 18.93% 6.97%

Earnings & Valuation

This table compares Terravia Holdings and Ecolab’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Terravia Holdings N/A N/A N/A ($1.10) -0.04
Ecolab $13.36 billion 2.82 $2.89 billion $4.38 29.68

Ecolab has higher revenue and earnings than Terravia Holdings. Terravia Holdings is trading at a lower price-to-earnings ratio than Ecolab, indicating that it is currently the more affordable of the two stocks.

Dividends

Ecolab pays an annual dividend of $1.48 per share and has a dividend yield of 1.1%. Terravia Holdings does not pay a dividend. Ecolab pays out 33.8% of its earnings in the form of a dividend. Terravia Holdings has increased its dividend for 31 consecutive years.

Insider & Institutional Ownership

43.4% of Terravia Holdings shares are owned by institutional investors. Comparatively, 75.5% of Ecolab shares are owned by institutional investors. 10.1% of Terravia Holdings shares are owned by company insiders. Comparatively, 1.5% of Ecolab shares are owned 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Terravia Holdings and Ecolab, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terravia Holdings 0 1 0 0 2.00
Ecolab 0 8 6 0 2.43

Terravia Holdings currently has a consensus price target of $1.50, indicating a potential upside of 3,659.40%. Ecolab has a consensus price target of $132.67, indicating a potential upside of 2.07%. Given Terravia Holdings’ higher possible upside, equities research analysts plainly believe Terravia Holdings is more favorable than Ecolab.

Risk & Volatility

Terravia Holdings has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Ecolab has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Summary

Ecolab beats Terravia Holdings on 9 of the 14 factors compared between the two stocks.

About Terravia Holdings

Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.

About Ecolab

Ecolab Inc. provides water, hygiene and energy technologies and services. The Company’s cleaning and sanitizing programs and products, pest elimination services and equipment maintenance and repair services support customers in the foodservice, food and beverage processing, hospitality, healthcare, government and education, retail, textile care and commercial facilities management sectors in over 170 countries. Its segments include Global Industrial, Global Institutional, Global Energy, Other and Corporate. Its Global Industrial segment consists of the Water, Food and Beverage, Paper and Textile Care operating units. Its Global Institutional segment consists of the Institutional, Specialty and Healthcare operating units. The Global Energy segment provides on-site and technology-driven solutions to the global drilling, oil and gas production, refining, and petrochemical industries. The Company’s Other segment consists of the Pest Elimination and Equipment Care operating units.

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