Financial Analysis: PureCycle Technologies (NASDAQ:PCT) versus ESGL (NASDAQ:ESGL)

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

Institutional and Insider Ownership

63.0% of PureCycle Technologies shares are held by institutional investors. 21.7% of PureCycle Technologies shares are held by company insiders. Comparatively, 22.4% of ESGL shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares PureCycle Technologies and ESGL”s gross 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)	-7.95
ESGL	$6.10 million	N/A	-$630,000.00	N/A	N/A

ESGL has higher revenue and earnings than PureCycle Technologies.

Volatility and Risk

PureCycle Technologies has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, ESGL has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for PureCycle Technologies and ESGL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PureCycle Technologies	0	0	4	2	3.33
ESGL	0	0	0	0	0.00

PureCycle Technologies presently has a consensus price target of $15.00, suggesting a potential upside of 11.61%. Given PureCycle Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe PureCycle Technologies is more favorable than ESGL.

Profitability

This table compares PureCycle Technologies and ESGL’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%
ESGL	N/A	N/A	N/A

Summary

PureCycle Technologies beats ESGL on 6 of the 11 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 ESGL

ESGL Holdings Limited provides waste solutions. It regenerates industrial waste into circular products using technologies and renewable energy. The company was founded in 1999 and is based in Singapore.