Montrose Environmental Group (NYSE:MEG – Get Free Report) and PureCycle Technologies (NASDAQ:PCT – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
Valuation & Earnings
This table compares Montrose Environmental Group and PureCycle Technologies”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Montrose Environmental Group | $696.40 million | 1.25 | -$62.31 million | ($1.51) | -16.35 |
| PureCycle Technologies | N/A | N/A | -$289.14 million | ($1.69) | -6.25 |
Profitability
This table compares Montrose Environmental Group and PureCycle Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Montrose Environmental Group | -5.10% | 0.46% | 0.21% |
| PureCycle Technologies | N/A | -107.05% | -23.78% |
Analyst Ratings
This is a summary of current ratings and target prices for Montrose Environmental Group and PureCycle Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Montrose Environmental Group | 1 | 3 | 4 | 0 | 2.38 |
| PureCycle Technologies | 1 | 0 | 4 | 3 | 3.13 |
Montrose Environmental Group presently has a consensus price target of $33.17, suggesting a potential upside of 34.34%. PureCycle Technologies has a consensus price target of $15.00, suggesting a potential upside of 41.91%. Given PureCycle Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe PureCycle Technologies is more favorable than Montrose Environmental Group.
Institutional and Insider Ownership
87.9% of Montrose Environmental Group shares are owned by institutional investors. Comparatively, 63.0% of PureCycle Technologies shares are owned by institutional investors. 11.2% of Montrose Environmental Group shares are owned by insiders. Comparatively, 21.7% of PureCycle Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Montrose Environmental Group has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.
Summary
PureCycle Technologies beats Montrose Environmental Group on 7 of the 13 factors compared between the two stocks.
About Montrose Environmental Group
Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.
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.
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