Analyzing Environmental Tectonics (OTCMKTS:ETCC) and ESS Tech (NYSE:GWH)

Environmental Tectonics (OTCMKTS:ETCC) and ESS Tech (NYSE:GWH) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Risk and Volatility

Environmental Tectonics has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Insider & Institutional Ownership

46.8% of ESS Tech shares are held by institutional investors. 74.8% of Environmental Tectonics shares are held by insiders. Comparatively, 1.8% of ESS Tech shares are held by 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 Environmental Tectonics and ESS Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Environmental Tectonics	-6.72%	N/A	-6.57%
ESS Tech	-1,028.89%	-71.44%	-53.77%

Earnings & Valuation

This table compares Environmental Tectonics and ESS Tech’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Environmental Tectonics	$26.34 million	N/A	-$1.56 million	($0.20)	-4.00
ESS Tech	$7.54 million	15.44	-$77.58 million	($0.49)	-1.36

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

Analyst Ratings

This is a summary of current ratings for Environmental Tectonics and ESS Tech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Environmental Tectonics	0	0	0	0	N/A
ESS Tech	0	2	1	0	2.33

ESS Tech has a consensus price target of $2.14, indicating a potential upside of 221.09%. Given ESS Tech’s higher possible upside, analysts plainly believe ESS Tech is more favorable than Environmental Tectonics.

Summary

Environmental Tectonics beats ESS Tech on 7 of the 12 factors compared between the two stocks.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.

About ESS Tech

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.