Analyzing Fuel Tech (FTEK) and CECO Environmental Corp. (CECE)
Fuel Tech (NASDAQ: FTEK) and CECO Environmental Corp. (NASDAQ:CECE) are both small-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitabiliy, earnings, dividends, valuation, risk and analyst recommendations.
This table compares Fuel Tech and CECO Environmental Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CECO Environmental Corp.||-10.15%||15.78%||6.44%|
Volatility & Risk
Fuel Tech has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, CECO Environmental Corp. has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Insider & Institutional Ownership
25.2% of Fuel Tech shares are held by institutional investors. Comparatively, 68.9% of CECO Environmental Corp. shares are held by institutional investors. 13.9% of Fuel Tech shares are held by company insiders. Comparatively, 14.3% of CECO Environmental Corp. shares are held by company 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.
CECO Environmental Corp. pays an annual dividend of $0.30 per share and has a dividend yield of 3.7%. Fuel Tech does not pay a dividend. CECO Environmental Corp. pays out -25.0% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for Fuel Tech and CECO Environmental Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CECO Environmental Corp.||0||2||0||1||2.67|
CECO Environmental Corp. has a consensus target price of $12.33, suggesting a potential upside of 51.70%. Given CECO Environmental Corp.’s higher possible upside, analysts clearly believe CECO Environmental Corp. is more favorable than Fuel Tech.
Earnings and Valuation
This table compares Fuel Tech and CECO Environmental Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fuel Tech||$45.83 million||0.43||-$8.31 million||($0.74)||-1.11|
|CECO Environmental Corp.||$406.49 million||0.69||$54.81 million||($1.20)||-6.77|
CECO Environmental Corp. has higher revenue and earnings than Fuel Tech. CECO Environmental Corp. is trading at a lower price-to-earnings ratio than Fuel Tech, indicating that it is currently the more affordable of the two stocks.
CECO Environmental Corp. beats Fuel Tech on 13 of the 14 factors compared between the two stocks.
About Fuel Tech
Fuel Tech, Inc. is a technology company. The Company is engaged in the development, commercialization and application of technologies for air pollution control, process optimization, combustion efficiency and engineering services. It operates through three segments: Air Pollution Control technology, FUEL CHEM technology and Fuel Conversion. The Air Pollution Control technology segment includes technologies to manage nitrogen oxides (NOx) emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. The FUEL CHEM technology segment uses chemical processes in combination with computational fluid dynamics (CFD) and chemical kinetics modeling (CKM) boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace. The Fuel Conversion segment represents the CARBONITE fuel conversion process and technology.
About CECO Environmental Corp.
CECO Environmental Corp. is a provider of engineered technologies to the environmental, energy, and fluid handling and filtration industrial segments. The Company is focused on engineering, designing, building and installing systems that capture, clean and destroy airborne contaminants from industrial facilities, as well as equipment that controls emissions from such facilities, and fluid handling and filtration systems. Its Environmental segment is engaged in the design and manufacture of product recovery and air pollution control technologies that enable its customers to meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. Its Energy segment provides customized solutions for the power and petrochemical industry. Its Fluid Handling and Filtration segment provides the design and manufacture of pump, filtration and fume exhaust solutions.
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