Fuel Tech (NASDAQ:FTEK – Get Free Report) and Interface (NASDAQ:TILE – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
Fuel Tech has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Interface has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.
Valuation & Earnings
This table compares Fuel Tech and Interface”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fuel Tech | $26.68 million | 1.71 | -$2.32 million | ($0.11) | -13.32 |
| Interface | $1.39 billion | 1.52 | $116.10 million | $2.47 | 14.73 |
Interface has higher revenue and earnings than Fuel Tech. Fuel Tech is trading at a lower price-to-earnings ratio than Interface, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
20.9% of Fuel Tech shares are held by institutional investors. Comparatively, 98.3% of Interface shares are held by institutional investors. 9.8% of Fuel Tech shares are held by company insiders. Comparatively, 2.5% of Interface shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Fuel Tech and Interface, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fuel Tech | 1 | 1 | 0 | 0 | 1.50 |
| Interface | 0 | 1 | 3 | 0 | 2.75 |
Interface has a consensus price target of $40.50, suggesting a potential upside of 11.35%. Given Interface’s stronger consensus rating and higher possible upside, analysts clearly believe Interface is more favorable than Fuel Tech.
Profitability
This table compares Fuel Tech and Interface’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fuel Tech | -12.75% | -8.88% | -7.62% |
| Interface | 10.10% | 21.77% | 11.18% |
Summary
Interface beats Fuel Tech on 12 of the 14 factors compared between the two stocks.
About Fuel Tech
Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. The company operates through Air Pollution Control Technology and FUEL CHEM Technology segments. The Air Pollution Control Technology segment offers technologies to reduce nitrogen oxide (NOx) emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources; NOxOUT and HERT selective non-catalytic reduction systems; selective catalytic reduction systems comprising ammonia injection grid, and graduated straightening grid systems; I-NOx systems; ESP Processes and Services; ULTRA technology; and flue gas conditioning systems. The FUEL CHEM Technology segment provides programs to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity, and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter, sulfur dioxide, and carbon dioxide through the addition of chemicals into the furnace using TIFI targeted in-furnace injection technology. This segment offers its FUEL CHEM program for plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, and university and district heating markets; and the owners of boilers, furnaces, and other combustion units. Fuel Tech, Inc. was incorporated in 1987 and is headquartered in Warrenville, Illinois.
About Interface
Interface, Inc. designs, produces, and sells modular carpet products primarily worldwide. The company operates in two segments, Americas (AMS), and Europe, Africa, Asia and Australia (EAAA). The company offers modular carpets under the Interface and FLOR brand names; luxury vinyl tiles; carpet tiles under the CQuestGB name for use in commercial interiors, include offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; and modular resilient flooring products. It also provides carpet replacement, installation, and maintenance services; and rubber flooring under the norament and noraplan brand names; as well as produces and sells an adapted version of its carpet tile for the healthcare facilities market. In addition, the company sells a proprietary antimicrobial chemical compound under the Intersept name; sells TacTiles, a carpet tile installation system, as well as various adhesives and products; and provides turnkey project management services for global accounts and other customers through its InterfaceSERVICES business. The company sells its products directly to end-users, as well as indirectly through independent contractors, installers, or distributors. Interface, Inc. was incorporated in 1973 and is headquartered in Atlanta, Georgia.
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