Head to Head Analysis: Arkema (OTCMKTS:ARKAY) & PureCycle Technologies (NASDAQ:PCT)

Arkema (OTCMKTS:ARKAY) and PureCycle Technologies (NASDAQ:PCT) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Arkema and PureCycle Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arkema	1	6	0	0	1.86
PureCycle Technologies	1	1	1	0	2.00

PureCycle Technologies has a consensus target price of $11.75, suggesting a potential upside of 324.19%. Given PureCycle Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe PureCycle Technologies is more favorable than Arkema.

Risk & Volatility

Arkema has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 2.63, indicating that its stock price is 163% more volatile than the S&P 500.

Earnings & Valuation

This table compares Arkema and PureCycle Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arkema	$10.26 billion	0.45	$71.28 million	$0.29	210.40
PureCycle Technologies	$13.76 million	40.43	-$182.57 million	($1.46)	-1.90

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

Profitability

This table compares Arkema and PureCycle Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arkema	0.67%	4.30%	2.15%
PureCycle Technologies	-1,618.84%	-612.39%	-22.08%

Insider & Institutional Ownership

63.0% of PureCycle Technologies shares are owned by institutional investors. 18.8% of PureCycle Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

About Arkema

Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. This segment also offers performance polymers, such as specialty polyamides, PVDF, polyimides, fluorospecialties, and polyetherketoneketone; and performance additives which includes molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide. The Advance Materials and Coating Solutions segment offers coating solutions, including comprising EU/US acrylics and coating resins; coating additives, such as sartomer photocure resins and coatex rheology additives. This segment also provides decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbent, water treatment and oil and gas extraction, and 3D printing and electronics industries. The Intermediates segment provides fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.

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.