Head-To-Head Review: 374Water (NASDAQ:SCWO) versus Quest Resource (NASDAQ:QRHC)

374Water (NASDAQ:SCWO) and Quest Resource (NASDAQ:QRHC) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Volatility & Risk

374Water has a beta of -0.28, suggesting that its stock price is 128% less volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for 374Water and Quest Resource, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
374Water	1	0	0	0	1.00
Quest Resource	2	1	0	0	1.33

Quest Resource has a consensus price target of $2.25, indicating a potential upside of 55.17%. Given Quest Resource’s stronger consensus rating and higher possible upside, analysts plainly believe Quest Resource is more favorable than 374Water.

Earnings and Valuation

This table compares 374Water and Quest Resource”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
374Water	$220,000.00	175.00	-$20.98 million	($0.86)	-2.56
Quest Resource	$243.52 million	0.13	-$15.38 million	($0.34)	-4.26

Quest Resource has higher revenue and earnings than 374Water. Quest Resource is trading at a lower price-to-earnings ratio than 374Water, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

12.2% of 374Water shares are owned by institutional investors. Comparatively, 48.2% of Quest Resource shares are owned by institutional investors. 16.3% of 374Water shares are owned by company insiders. Comparatively, 19.6% of Quest Resource 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.

Profitability

This table compares 374Water and Quest Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
374Water	-911.15%	-338.77%	-189.45%
Quest Resource	-3.00%	-12.30%	-3.39%

Summary

Quest Resource beats 374Water on 11 of the 13 factors compared between the two stocks.

About 374Water

374Water Inc. provides a technology that transforms wet wastes into recoverable resources in the United States. The company transforms wet wastes, including sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemicals. It offers AirSCWO systems, a waste stream treatment system based on supercritical water oxidation that are used to treat various hazardous and non-hazardous waste streams. It serves Industrial, agricultural, defense, oil and gas, waste management, sanitation project, environmental remediation and compliance, and municipal markets. 374Water Inc. is based in Durham, North Carolina.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.