Sims Metal Management (OTCMKTS:SMSMY) versus Select Water Solutions (NYSE:WTTR) Head to Head Analysis

Select Water Solutions (NYSE:WTTR) and Sims Metal Management (OTCMKTS:SMSMY) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

81.7% of Select Water Solutions shares are owned by institutional investors. 8.4% of Select Water Solutions shares are owned by company 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Select Water Solutions and Sims Metal Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Water Solutions	0	0	2	1	3.33
Sims Metal Management	1	0	0	0	1.00

Select Water Solutions currently has a consensus price target of $15.00, suggesting a potential upside of 41.42%. Given Select Water Solutions’ stronger consensus rating and higher possible upside, equities analysts plainly believe Select Water Solutions is more favorable than Sims Metal Management.

Dividends

Select Water Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 2.6%. Sims Metal Management pays an annual dividend of $0.14 per share and has a dividend yield of 1.6%. Select Water Solutions pays out 90.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Select Water Solutions has raised its dividend for 2 consecutive years. Select Water Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Select Water Solutions has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Sims Metal Management has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares Select Water Solutions and Sims Metal Management”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Select Water Solutions	$1.45 billion	0.89	$30.64 million	$0.31	34.22
Sims Metal Management	$4.85 billion	0.35	-$12.30 million	N/A	N/A

Select Water Solutions has higher earnings, but lower revenue than Sims Metal Management.

Profitability

This table compares Select Water Solutions and Sims Metal Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Select Water Solutions	2.26%	3.69%	2.34%
Sims Metal Management	N/A	N/A	N/A

Summary

Select Water Solutions beats Sims Metal Management on 13 of the 15 factors compared between the two stocks.

About Select Water Solutions

Select Water Solutions, Inc., together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services. The Water Infrastructure segment engages in the recycling, gathering, transferring, and disposal of water through a network of permanent pipeline infrastructure, semi-permanent pipeline infrastructure, water recycling facilities, earthen pits, water sources, and SWDs; provides solids management services; and develops, builds, and operates semi-permanent and permanent infrastructure solutions. The Chemical Technologies segment provides technical solutions, products, and services related to chemical applications in the oil and gas industry. This segment develops, manufactures, and manages logistics; and provides chemicals used in hydraulic fracturing, stimulation, cementing, and well completions for pressure pumpers and oil and gas producers, as well as offers production chemical solutions for underperforming wells, corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. It primarily serves oil and gas producers. The company was formerly known as Select Energy Services, Inc. and changed its name to Select Water Solutions, Inc. in May 2023. Select Water Solutions, Inc. was incorporated in 2016 and is headquartered in Houston, Texas.

About Sims Metal Management

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, Bangladesh, China, Turkey, the United States, and internationally. The company operates through six segments: North America Metals, Investment in SA Recycling, Australia/New Zealand Metals, UK Metals, Global Trading, and Sims Lifecycle Services. It is involved in the collection, processing, and trading of iron and steel secondary raw materials; and other metal alloys and residues, principally aluminum, lead, copper, zinc, and nickel bearing materials. The company also engages in the provision of environmentally responsible solutions for the disposal of post-consumer electronic products, such as information technology assets recycled for commercial customers; and environmentally responsible recycling of negative value materials, including electronic equipment. In addition, it provides secondary processing and other services comprising recycling of municipal curbside materials, stevedoring, and other sources of service. The company was founded in 1917 and is headquartered in Mascot, Australia.