Head-To-Head Contrast: ARQ (NASDAQ:ARQ) & Flexible Solutions International (NYSE:FSI)

Flexible Solutions International (NYSE:FSI) and ARQ (NASDAQ:ARQ) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings & Valuation

This table compares Flexible Solutions International and ARQ’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flexible Solutions International	$38.33 million	0.66	$2.78 million	$0.22	9.27
ARQ	$99.18 million	2.23	-$12.25 million	($0.50)	-13.22

Flexible Solutions International has higher earnings, but lower revenue than ARQ. ARQ is trading at a lower price-to-earnings ratio than Flexible Solutions International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Flexible Solutions International and ARQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flexible Solutions International	0	0	0	0	N/A
ARQ	0	0	0	0	N/A

Insider & Institutional Ownership

54.3% of Flexible Solutions International shares are held by institutional investors. Comparatively, 18.5% of ARQ shares are held by institutional investors. 35.5% of Flexible Solutions International shares are held by company insiders. Comparatively, 22.2% of ARQ shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Flexible Solutions International has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, ARQ has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Profitability

This table compares Flexible Solutions International and ARQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flexible Solutions International	7.24%	7.51%	5.18%
ARQ	-12.35%	-8.35%	-6.16%

Summary

Flexible Solutions International beats ARQ on 9 of the 11 factors compared between the two stocks.

About Flexible Solutions International

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. Flexible Solutions International, Inc. was incorporated in 1991 and is headquartered in Taber, Canada.

About ARQ

Arq, Inc. produces activated carbon products in North America. The company's products include granular activated carbon, powdered and granular activated carbon, and colloidal carbon products; Arq Powder Wetcake, a fine and low-ash coal waste-derived particle; and additives for air emissions control. Its products are used in various applications, including water treatment, ground water remediation, soil sediments, air emissions, and asphalt additives. The company was formerly known as Advanced Emissions Solutions, Inc. and changed its name to Arq, Inc. in February 2024. Arq, Inc. was founded in 1997 and is headquartered in Greenwood Village, Colorado.