Critical Survey: TOMI Environmental Solutions (NASDAQ:TOMZ) vs. Quest Resource (NASDAQ:QRHC)

TOMI Environmental Solutions (NASDAQ:TOMZ) and Quest Resource (NASDAQ:QRHC) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Volatility and Risk

TOMI Environmental Solutions has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.

Institutional and Insider Ownership

4.8% of TOMI Environmental Solutions shares are held by institutional investors. Comparatively, 48.2% of Quest Resource shares are held by institutional investors. 20.2% of TOMI Environmental Solutions shares are held by insiders. Comparatively, 19.6% of Quest Resource shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares TOMI Environmental Solutions and Quest Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOMI Environmental Solutions	-75.34%	-315.96%	-55.52%
Quest Resource	-3.00%	-12.30%	-3.39%

Analyst Recommendations

This is a breakdown of recent recommendations for TOMI Environmental Solutions and Quest Resource, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOMI Environmental Solutions	1	1	0	0	1.50
Quest Resource	2	1	0	0	1.33

Quest Resource has a consensus price target of $2.25, indicating a potential upside of 74.42%. Given Quest Resource’s higher possible upside, analysts plainly believe Quest Resource is more favorable than TOMI Environmental Solutions.

Earnings & Valuation

This table compares TOMI Environmental Solutions and Quest Resource”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOMI Environmental Solutions	$5.64 million	3.39	-$3.75 million	($0.21)	-3.94
Quest Resource	$250.22 million	0.11	-$15.38 million	($0.34)	-3.79

TOMI Environmental Solutions has higher earnings, but lower revenue than Quest Resource. TOMI Environmental Solutions is trading at a lower price-to-earnings ratio than Quest Resource, indicating that it is currently the more affordable of the two stocks.

Summary

Quest Resource beats TOMI Environmental Solutions on 7 of the 13 factors compared between the two stocks.

About TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.