Critical Review: Aduro Clean Technologies (NASDAQ:ADUR) & Origin Materials (NASDAQ:ORGN)

Origin Materials (NASDAQ:ORGN) and Aduro Clean Technologies (NASDAQ:ADUR) are both small-cap materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Valuation and Earnings

This table compares Origin Materials and Aduro Clean Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Materials	$13.97 million	0.37	-$249.70 million	($47.83)	-0.02
Aduro Clean Technologies	$167,206.00	2,592.84	-$19.47 million	($0.62)	-19.80

Aduro Clean Technologies has lower revenue, but higher earnings than Origin Materials. Aduro Clean Technologies is trading at a lower price-to-earnings ratio than Origin Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Origin Materials and Aduro Clean Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Materials	1	0	0	0	1.00
Aduro Clean Technologies	1	1	3	1	2.67

Aduro Clean Technologies has a consensus price target of $29.25, suggesting a potential upside of 138.25%. Given Aduro Clean Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Aduro Clean Technologies is more favorable than Origin Materials.

Profitability

This table compares Origin Materials and Aduro Clean Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Origin Materials	-1,742.04%	-120.66%	-99.50%
Aduro Clean Technologies	N/A	-104.06%	-77.60%

Insider & Institutional Ownership

29.9% of Origin Materials shares are held by institutional investors. 2.8% of Origin Materials shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Origin Materials has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Aduro Clean Technologies has a beta of 3.22, suggesting that its share price is 222% more volatile than the S&P 500.

Summary

Aduro Clean Technologies beats Origin Materials on 11 of the 15 factors compared between the two stocks.

About Origin Materials

Origin Materials, Inc., together with its subsidiaries, operates as a carbon-negative materials company. The company develops a proprietary biomass conversion platform to convert biomass, or plant-based carbon into building block chemicals chloromethylfurfural and hydrothermal carbon, as well as other oils and extractives and other co-products. Origin Materials, Inc. is headquartered in West Sacramento, California.

About Aduro Clean Technologies

Aduro Clean Technologies is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil and transform renewable oils into higher-value fuels or renewable chemicals. Aduro Clean Technologies is based in LONDON, Ontario.