PureCycle Technologies (NASDAQ:PCT – Get Free Report) and Aris Water Solutions (NYSE:ARIS – Get Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares PureCycle Technologies and Aris Water Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PureCycle Technologies | N/A | -143.06% | -23.17% |
| Aris Water Solutions | 6.00% | 3.77% | 1.99% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for PureCycle Technologies and Aris Water Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PureCycle Technologies | 1 | 0 | 3 | 3 | 3.14 |
| Aris Water Solutions | 0 | 8 | 2 | 0 | 2.20 |
Risk & Volatility
PureCycle Technologies has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Aris Water Solutions has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.
Insider & Institutional Ownership
63.0% of PureCycle Technologies shares are owned by institutional investors. Comparatively, 39.7% of Aris Water Solutions shares are owned by institutional investors. 21.7% of PureCycle Technologies shares are owned by company insiders. Comparatively, 37.8% of Aris Water Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares PureCycle Technologies and Aris Water Solutions”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PureCycle Technologies | $5.66 million | 282.71 | -$289.14 million | ($1.46) | -6.08 |
| Aris Water Solutions | $475.50 million | 2.94 | $26.86 million | $0.83 | 28.43 |
Aris Water Solutions has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than Aris Water Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
Aris Water Solutions beats PureCycle Technologies on 8 of the 15 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 Aris Water Solutions
Aris Water Solutions, Inc., an environmental infrastructure and solutions company, provides water handling and recycling solutions. The company's produced water handling business gathers, transports, unless recycled, and handles produced water generated from oil and natural gas production. Its water solutions business develops and operates recycling facilities to treat, store, and recycle produced water. Aris Water Solutions, Inc. was founded in 2015 and is headquartered in Houston, Texas.
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