DNOW (NYSE:DNOW – Get Free Report) and Ascent Industries (NASDAQ:ACNT – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Profitability
This table compares DNOW and Ascent Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DNOW | 3.91% | 9.35% | 6.55% |
| Ascent Industries | 0.85% | -1.63% | -1.09% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for DNOW and Ascent Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DNOW | 0 | 1 | 2 | 1 | 3.00 |
| Ascent Industries | 0 | 1 | 0 | 0 | 2.00 |
Insider and Institutional Ownership
97.6% of DNOW shares are owned by institutional investors. Comparatively, 26.1% of Ascent Industries shares are owned by institutional investors. 2.7% of DNOW shares are owned by insiders. Comparatively, 9.3% of Ascent Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares DNOW and Ascent Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DNOW | $2.37 billion | 0.63 | $81.00 million | $0.87 | 16.46 |
| Ascent Industries | $177.87 million | 0.87 | -$13.60 million | $0.12 | 137.17 |
DNOW has higher revenue and earnings than Ascent Industries. DNOW is trading at a lower price-to-earnings ratio than Ascent Industries, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
DNOW has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Ascent Industries has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.
Summary
DNOW beats Ascent Industries on 12 of the 15 factors compared between the two stocks.
About DNOW
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
About Ascent Industries
Ascent Industries Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is based in Oak Brook, Illinois.
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