Comparing Loop Industries (NASDAQ:LOOP) & Climb Global Solutions (NASDAQ:CLMB)

Climb Global Solutions (NASDAQ:CLMB) and Loop Industries (NASDAQ:LOOP) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Valuation and Earnings

This table compares Climb Global Solutions and Loop Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Climb Global Solutions	$465.61 million	1.21	$18.61 million	$4.65	26.19
Loop Industries	$10.89 million	5.57	-$15.06 million	($0.06)	-20.92

Climb Global Solutions has higher revenue and earnings than Loop Industries. Loop Industries is trading at a lower price-to-earnings ratio than Climb Global Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Climb Global Solutions and Loop Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Climb Global Solutions	3.44%	26.52%	6.49%
Loop Industries	-120.79%	N/A	-18.36%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Climb Global Solutions and Loop Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Global Solutions	0	2	1	0	2.33
Loop Industries	0	0	0	0	0.00

Climb Global Solutions currently has a consensus price target of $136.00, suggesting a potential upside of 11.69%. Given Climb Global Solutions’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Climb Global Solutions is more favorable than Loop Industries.

Insider and Institutional Ownership

49.7% of Climb Global Solutions shares are owned by institutional investors. Comparatively, 4.9% of Loop Industries shares are owned by institutional investors. 6.1% of Climb Global Solutions shares are owned by company insiders. Comparatively, 45.9% of Loop Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Climb Global Solutions has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Loop Industries has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Summary

Climb Global Solutions beats Loop Industries on 11 of the 14 factors compared between the two stocks.

About Climb Global Solutions

Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions; and provides cloud solutions and resells software, hardware, and services under the name Grey Matter. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers. In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. It markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials. The company was formerly known as Wayside Technology Group, Inc. and changed its name to Climb Global Solutions Inc. in October 2022. Climb Global Solutions Inc. was incorporated in 1982 and is headquartered in Eatontown, New Jersey.

About Loop Industries

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.