Financial Analysis: EAU Technologies (OTCMKTS:EAUI) versus Diversey (NASDAQ:DSEY)

EAU Technologies (OTCMKTS:EAUIGet Rating) and Diversey (NASDAQ:DSEYGet Rating) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares EAU Technologies and Diversey’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EAU Technologies N/A N/A N/A
Diversey -6.67% 24.92% 3.72%

Risk and Volatility

EAU Technologies has a beta of -0.61, indicating that its share price is 161% less volatile than the S&P 500. Comparatively, Diversey has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Institutional and Insider Ownership

97.7% of Diversey shares are held by institutional investors. 3.1% of Diversey shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares EAU Technologies and Diversey’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EAU Technologies N/A N/A N/A N/A N/A
Diversey $2.62 billion 1.01 -$174.80 million ($0.64) -12.98

EAU Technologies has higher earnings, but lower revenue than Diversey.

Analyst Recommendations

This is a summary of current recommendations for EAU Technologies and Diversey, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EAU Technologies 0 0 0 0 N/A
Diversey 0 4 5 0 2.56

Diversey has a consensus price target of $13.33, indicating a potential upside of 60.45%. Given Diversey’s higher possible upside, analysts clearly believe Diversey is more favorable than EAU Technologies.

Summary

Diversey beats EAU Technologies on 8 of the 9 factors compared between the two stocks.

About EAU Technologies (Get Rating)

EAU Technologies, Inc. develops, manufactures, and markets equipment that uses water electrolysis to create non-toxic cleaning and disinfecting fluids for food safety applications and dairy drinking water in the United States. Its products include Primacide A, a disinfecting and sanitizing fluid that kills bacteria, yeast, molds, viruses, and other organisms; Primacide B, an alkaline based cleaner; and Primacide C, which is used to stabilize acid water. The company's fluids are used in commercial food processing, and organic or non-organic agricultural and consumer products that clean, disinfect, remediate, hydrate, and moisturize. It markets its products primarily for food and beverage processing, dairy production and processing, meat and poultry processing, and agricultural grow-out and processing industries, as well as environmental remediation, medical, seafood processing, and grocery store produce and meat departments. The company was formerly known as Electric Aquagenics Unlimited, Inc. and changed its name to EAU Technologies, Inc. in January 2007. EAU Technologies, Inc. was founded in 1998 and is headquartered in Kennesaw, Georgia.

About Diversey (Get Rating)

Diversey Holdings, Ltd., through its subsidiaries, provides infection prevention and cleaning solutions worldwide. It operates in two segments, Institutional, and Food & Beverage. The Institutional segment offers products, solutions, equipment, and machines, including infection prevention and personal care products, floor and building care chemicals, kitchen and mechanical ware wash chemicals and machines, dosing and dispensing equipment, and floor care machines, as well as engineering, consulting, and training services related to productivity management, water and energy management, and risk management. This segment serves customers in the healthcare, education, food service, retail and grocery, hospitality, and building service contractors industries. The Food & Beverage segment provides a range of products, solutions, equipment, and machines, such as chemical products, engineering and equipment solutions, knowledge-based services, training through its Diversey Hygiene Academy, and water treatment. This segment serves customers in the brewing, beverage, dairy, processed foods, pharma, and agriculture industries. Diversey Holdings, Ltd. was founded in 1923 and is headquartered in Fort Mill, South Carolina.

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