Financial Analysis: PureCycle Technologies (PCT) vs. Its Peers

PureCycle Technologies (NYSE:PCTGet Rating) is one of 20 publicly-traded companies in the “Plastics materials & resins” industry, but how does it compare to its peers? We will compare PureCycle Technologies to similar companies based on the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Insider and Institutional Ownership

43.9% of PureCycle Technologies shares are owned by institutional investors. Comparatively, 73.3% of shares of all “Plastics materials & resins” companies are owned by institutional investors. 11.1% of PureCycle Technologies shares are owned by insiders. Comparatively, 3.0% of shares of all “Plastics materials & resins” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

PureCycle Technologies has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, PureCycle Technologies’ peers have a beta of 1.62, suggesting that their average stock price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for PureCycle Technologies and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PureCycle Technologies 0 0 5 0 3.00
PureCycle Technologies Competitors 212 1084 1426 50 2.47

PureCycle Technologies currently has a consensus target price of $24.00, suggesting a potential upside of 198.51%. As a group, “Plastics materials & resins” companies have a potential upside of 18.03%. Given PureCycle Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe PureCycle Technologies is more favorable than its peers.

Valuation & Earnings

This table compares PureCycle Technologies and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PureCycle Technologies N/A -$77.50 million -7.73
PureCycle Technologies Competitors $14.34 billion $1.38 billion 43.31

PureCycle Technologies’ peers have higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares PureCycle Technologies and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PureCycle Technologies N/A -21.91% -11.08%
PureCycle Technologies Competitors 2.22% 15.54% 5.52%

Summary

PureCycle Technologies peers beat PureCycle Technologies on 8 of the 12 factors compared.

About PureCycle Technologies (Get Rating)

PureCycle Technologies, Inc. produces recycled polypropylene (PP). The company holds a license for restoring waste PP into virgin-like resin. Its proprietary process removes color, odor, and other contaminants from recycled feedstock to produce recycled PP. The company was founded in 2015 and is based in Orlando, Florida.

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