Reviewing 374Water (NASDAQ:SCWO) and Montrose Environmental Group (NYSE:MEG)

374Water (NASDAQ:SCWOGet Free Report) and Montrose Environmental Group (NYSE:MEGGet Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Valuation & Earnings

This table compares 374Water and Montrose Environmental Group”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
374Water $440,000.00 103.78 -$12.43 million ($0.12) -2.25
Montrose Environmental Group $826.32 million 1.12 -$62.31 million ($0.91) -28.86

374Water has higher earnings, but lower revenue than Montrose Environmental Group. Montrose Environmental Group is trading at a lower price-to-earnings ratio than 374Water, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 374Water and Montrose Environmental Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
374Water -911.15% -160.15% -118.22%
Montrose Environmental Group -2.52% 0.17% 0.08%

Volatility & Risk

374Water has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Insider & Institutional Ownership

12.2% of 374Water shares are held by institutional investors. Comparatively, 87.9% of Montrose Environmental Group shares are held by institutional investors. 16.3% of 374Water shares are held by insiders. Comparatively, 11.9% of Montrose Environmental Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for 374Water and Montrose Environmental Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
374Water 1 0 0 0 1.00
Montrose Environmental Group 1 2 4 0 2.43

Montrose Environmental Group has a consensus price target of $34.40, suggesting a potential upside of 30.96%. Given Montrose Environmental Group’s stronger consensus rating and higher possible upside, analysts plainly believe Montrose Environmental Group is more favorable than 374Water.

Summary

Montrose Environmental Group beats 374Water on 9 of the 14 factors compared between the two stocks.

About 374Water

(Get Free Report)

374Water Inc. provides a technology that transforms wet wastes into recoverable resources in the United States. The company transforms wet wastes, including sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemicals. It offers AirSCWO systems, a waste stream treatment system based on supercritical water oxidation that are used to treat various hazardous and non-hazardous waste streams. It serves Industrial, agricultural, defense, oil and gas, waste management, sanitation project, environmental remediation and compliance, and municipal markets. 374Water Inc. is based in Durham, North Carolina.

About Montrose Environmental Group

(Get Free Report)

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.

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