Head-To-Head Contrast: Fuel Tech (NASDAQ:FTEK) and CECO Environmental (NASDAQ:CECO)

Fuel Tech (NASDAQ:FTEKGet Rating) and CECO Environmental (NASDAQ:CECOGet Rating) are both small-cap industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

17.3% of Fuel Tech shares are owned by institutional investors. Comparatively, 64.9% of CECO Environmental shares are owned by institutional investors. 9.3% of Fuel Tech shares are owned by insiders. Comparatively, 15.1% of CECO Environmental shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Fuel Tech and CECO Environmental’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fuel Tech -4.87% -2.84% -2.59%
CECO Environmental 2.58% 8.12% 3.68%

Risk & Volatility

Fuel Tech has a beta of 4.23, meaning that its stock price is 323% more volatile than the S&P 500. Comparatively, CECO Environmental has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fuel Tech and CECO Environmental, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fuel Tech 0 0 0 0 N/A
CECO Environmental 0 0 1 0 3.00

CECO Environmental has a consensus target price of $16.00, suggesting a potential upside of 14.37%. Given CECO Environmental’s higher possible upside, analysts clearly believe CECO Environmental is more favorable than Fuel Tech.

Valuation and Earnings

This table compares Fuel Tech and CECO Environmental’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fuel Tech $24.26 million 2.10 $50,000.00 ($0.04) -42.00
CECO Environmental $324.14 million 1.48 $1.43 million $0.20 69.95

CECO Environmental has higher revenue and earnings than Fuel Tech. Fuel Tech is trading at a lower price-to-earnings ratio than CECO Environmental, indicating that it is currently the more affordable of the two stocks.

Summary

CECO Environmental beats Fuel Tech on 11 of the 13 factors compared between the two stocks.

About Fuel Tech

(Get Rating)

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. It operates through two segments, Air Pollution Control Technology and FUEL CHEM Technology. 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 by low and ultra-low NOx burners; over-fire air systems; 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; and burner 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. The company was incorporated in 1987 and is headquartered in Warrenville, Illinois.

About CECO Environmental

(Get Rating)

CECO Environmental Corp. provides industrial air quality and fluid handling systems worldwide. It operates in two segments: Engineered Systems Segment and Industrial Process Solutions Segment. The company engineers, designs, builds, and installs systems that capture, clean, and destroy air- and water-borne emissions from industrial facilities as well as fluid handling, gas separation, and filtration systems. It offers dampers and diverters, selective catalytic reduction and selective non-catalytic reduction systems, cyclonic technology, thermal oxidizers, filtration systems, scrubbers, and water and fluid handling equipment, as well as plant engineering services and engineered design build fabrication. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producer companies. CECO Environmental Corp. was incorporated in 1966 and is headquartered in Dallas, Texas.

Receive News & Ratings for Fuel Tech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fuel Tech and related companies with MarketBeat.com's FREE daily email newsletter.