ARQ (NASDAQ:ARQ – Get Free Report) and TOMI Environmental Solutions (NASDAQ:TOMZ – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Profitability
This table compares ARQ and TOMI Environmental Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARQ | -3.33% | -1.11% | -0.86% |
| TOMI Environmental Solutions | -91.40% | -91.39% | -32.35% |
Insider and Institutional Ownership
18.5% of ARQ shares are held by institutional investors. Comparatively, 4.8% of TOMI Environmental Solutions shares are held by institutional investors. 23.9% of ARQ shares are held by company insiders. Comparatively, 23.5% of TOMI Environmental Solutions shares are held 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 and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARQ | $108.96 million | 1.41 | -$5.11 million | ($0.10) | -36.00 |
| TOMI Environmental Solutions | $7.74 million | 2.07 | -$4.48 million | ($0.25) | -3.17 |
TOMI Environmental Solutions has lower revenue, but higher earnings than ARQ. ARQ is trading at a lower price-to-earnings ratio than TOMI Environmental Solutions, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ARQ has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, TOMI Environmental Solutions has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for ARQ and TOMI Environmental Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARQ | 2 | 0 | 2 | 1 | 2.40 |
| TOMI Environmental Solutions | 1 | 1 | 1 | 0 | 2.00 |
ARQ currently has a consensus target price of $9.00, indicating a potential upside of 150.00%. TOMI Environmental Solutions has a consensus target price of $3.50, indicating a potential upside of 341.92%. Given TOMI Environmental Solutions’ higher possible upside, analysts clearly believe TOMI Environmental Solutions is more favorable than ARQ.
Summary
ARQ beats TOMI Environmental Solutions on 11 of the 15 factors compared between the two stocks.
About ARQ
Arq, Inc. is a holding company. It engages in the provision of environmental and emission control equipment to the power generation industry. The company operates through the following Segments: Refined Coal and Advanced Purification Technologies. The Refined Coal segment includes the Tinuum Group, Tinuum Services, and GWN Manager. The Advanced Purification Technologies segment refers to the sale of Activated Carbon Injection and Dry Sorbent Injection equipment systems, chemical sales, consulting services, and other sales related to the reduction of emissions in the coal-fired electric generation process and the electric utility industry. The company was founded in 1996 and is headquartered in Greenwood Village, CO.
About TOMI Environmental Solutions
TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.
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