Critical Review: Universal Detection Technology (OTCMKTS:UNDT) & CECO Environmental (NASDAQ:CECO)

CECO Environmental (NASDAQ:CECO) and Universal Detection Technology (OTCMKTS:UNDT) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

68.1% of CECO Environmental shares are owned by institutional investors. 18.4% of CECO Environmental shares are owned by company insiders. Comparatively, 9.6% of Universal Detection Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares CECO Environmental and Universal Detection Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CECO Environmental	7.22%	10.84%	3.60%
Universal Detection Technology	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for CECO Environmental and Universal Detection Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CECO Environmental	0	1	6	0	2.86
Universal Detection Technology	0	0	0	0	0.00

CECO Environmental currently has a consensus target price of $64.75, suggesting a potential downside of 5.95%. Given Universal Detection Technology’s higher possible upside, analysts clearly believe Universal Detection Technology is more favorable than CECO Environmental.

Earnings & Valuation

This table compares CECO Environmental and Universal Detection Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CECO Environmental	$557.93 million	4.40	$12.96 million	$1.41	48.83
Universal Detection Technology	N/A	N/A	N/A	N/A	N/A

CECO Environmental has higher revenue and earnings than Universal Detection Technology.

Summary

CECO Environmental beats Universal Detection Technology on 8 of the 9 factors compared between the two stocks.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.

About Universal Detection Technology

Universal Detection Technology engages in the research, development, marketing, and resale of detection devices for detecting chemical, biological, radiological, and nuclear threats in the United States, Europe, and Asia. It supplies bioterrorism detection kits capable of detecting anthrax, ricin, botulinum, plague, and SEBs; mold detection kits; chemical detection equipment; and radiation detection systems. The company also provides various counter-terrorism services, such as training courses for first responders; event security; threat evaluation and consulting; and DVDs aimed at providing information and training regarding combating terrorism and managing emergency situations. It serves first responders, as well as bioterror and military defense markets. The company markets and sells its products through in-house staff and outside consultants, as well as through the Internet. The company was formerly known as Pollution Research and Control Corporation and changed its name to Universal Detection Technology in August 2003. Universal Detection Technology was founded in 1971 and is headquartered in Beverly Hills, California.