PureCycle Technologies (NASDAQ:PCT) vs. Xylem (NYSE:XYL) Head-To-Head Contrast

PureCycle Technologies (NASDAQ:PCT) and Xylem (NYSE:XYL) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares PureCycle Technologies and Xylem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PureCycle Technologies	N/A	-107.05%	-23.78%
Xylem	10.74%	10.33%	6.72%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PureCycle Technologies and Xylem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PureCycle Technologies	0	0	3	1	3.25
Xylem	0	4	6	0	2.60

PureCycle Technologies presently has a consensus price target of $14.67, suggesting a potential upside of 7.84%. Xylem has a consensus price target of $152.29, suggesting a potential upside of 6.15%. Given PureCycle Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe PureCycle Technologies is more favorable than Xylem.

Earnings and Valuation

This table compares PureCycle Technologies and Xylem”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PureCycle Technologies	N/A	N/A	-$289.14 million	($1.69)	-8.05
Xylem	$8.56 billion	4.08	$890.00 million	$3.85	37.26

Xylem has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than Xylem, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

PureCycle Technologies has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500. Comparatively, Xylem has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

63.0% of PureCycle Technologies shares are held by institutional investors. Comparatively, 88.0% of Xylem shares are held by institutional investors. 21.7% of PureCycle Technologies shares are held by insiders. Comparatively, 0.3% of Xylem shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Xylem beats PureCycle Technologies on 9 of the 14 factors compared between the two stocks.

About PureCycle Technologies

PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multiple applications, including packaging and labeling for consumer products, piping, ropes, cabling, and plastic parts for various industries. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.

About Xylem

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands. The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue, and Flojet brands. The Measurement & Control Solutions segment offers smart meters, networked communication devices, data analytics, test equipment, controls, sensor devices, software and managed services, and critical infrastructure services; and software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment. This segment sells its products under the Pure Technologies, Sensus, Smith Blair, WTW, Xylem Vue, and YSI brands. The Integrated Solutions and Services segment provides maintenance services, mobile services, digital outsourced solutions, wastewater systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, ion exchange, and deionization under Aquapro, WaterOne, and Ion Pure brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. Xylem Inc. was incorporated in 2011 and is headquartered in Washington, District of Columbia.