PureCycle Technologies (NASDAQ:PCT – Get Free Report) and ARQ (NASDAQ:ARQ – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Profitability
This table compares PureCycle Technologies and ARQ’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PureCycle Technologies | -2,062.36% | -393.01% | -22.56% |
| ARQ | -43.93% | -2.67% | -2.00% |
Earnings and Valuation
This table compares PureCycle Technologies and ARQ”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PureCycle Technologies | $8.35 million | 129.74 | -$182.57 million | ($1.47) | -4.07 |
| ARQ | $122.14 million | 0.70 | -$52.61 million | ($1.29) | -1.54 |
ARQ has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than ARQ, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
63.0% of PureCycle Technologies shares are owned by institutional investors. Comparatively, 18.5% of ARQ shares are owned by institutional investors. 18.8% of PureCycle Technologies shares are owned by company insiders. Comparatively, 20.1% of ARQ shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for PureCycle Technologies and ARQ, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PureCycle Technologies | 1 | 1 | 1 | 1 | 2.50 |
| ARQ | 1 | 1 | 1 | 0 | 2.00 |
PureCycle Technologies currently has a consensus price target of $12.25, indicating a potential upside of 104.51%. ARQ has a consensus price target of $5.00, indicating a potential upside of 151.26%. Given ARQ’s higher possible upside, analysts plainly believe ARQ is more favorable than PureCycle Technologies.
Volatility and Risk
PureCycle Technologies has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500. Comparatively, ARQ has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.
Summary
ARQ beats PureCycle Technologies on 9 of the 14 factors compared between the two stocks.
About PureCycle Technologies
PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multiple applications, including packaging and labeling for consumer products, piping, ropes, cabling, and plastic parts for various industries. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.
About ARQ
Arq, Inc. is a holding company. It engages in the provision of environmental and emission control equipment to the power generation industry. The company operates through the following Segments: Refined Coal and Advanced Purification Technologies. The Refined Coal segment includes the Tinuum Group, Tinuum Services, and GWN Manager. The Advanced Purification Technologies segment refers to the sale of Activated Carbon Injection and Dry Sorbent Injection equipment systems, chemical sales, consulting services, and other sales related to the reduction of emissions in the coal-fired electric generation process and the electric utility industry. The company was founded in 1996 and is headquartered in Greenwood Village, CO.
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