Head-To-Head Contrast: Scope Industries (OTCMKTS:SCPJ) vs. Tetra Tech (NASDAQ:TTEK)

Scope Industries (OTCMKTS:SCPJ) and Tetra Tech (NASDAQ:TTEK) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Risk and Volatility

Scope Industries has a beta of -0.44, indicating that its share price is 144% less volatile than the S&P 500. Comparatively, Tetra Tech has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Institutional & Insider Ownership

93.9% of Tetra Tech shares are owned by institutional investors. 68.1% of Scope Industries shares are owned by insiders. Comparatively, 0.4% of Tetra Tech shares are owned 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.

Earnings & Valuation

This table compares Scope Industries and Tetra Tech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scope Industries	N/A	N/A	N/A	N/A	N/A
Tetra Tech	$5.49 billion	1.57	$333.38 million	$0.80	40.86

Tetra Tech has higher revenue and earnings than Scope Industries.

Profitability

This table compares Scope Industries and Tetra Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scope Industries	N/A	N/A	N/A
Tetra Tech	3.94%	24.70%	9.99%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Scope Industries and Tetra Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scope Industries	0	0	0	0	0.00
Tetra Tech	0	4	3	0	2.43

Tetra Tech has a consensus price target of $41.00, suggesting a potential upside of 25.42%. Given Tetra Tech’s stronger consensus rating and higher possible upside, analysts plainly believe Tetra Tech is more favorable than Scope Industries.

Dividends

Scope Industries pays an annual dividend of $10.00 per share and has a dividend yield of 4.0%. Tetra Tech pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. Tetra Tech pays out 32.5% of its earnings in the form of a dividend. Tetra Tech has raised its dividend for 11 consecutive years.

Summary

Tetra Tech beats Scope Industries on 10 of the 13 factors compared between the two stocks.

About Scope Industries

Scope Industries offers waste material recycling services in the United States. It operates plants for the collection and processing of bakery waste materials into a food supplement for animals. The company sells this food supplement to poultry farms, dairies, feed lots, and pet food manufacturers. Scope Industries also owns and operates a plant in Vernon, California, where certain bakery waste material is processed and converted into edible breadcrumbs for human consumption. The company's customers include prepackaged and restaurant supply food processors. Scope Industries was organized in 1938 and its principal executive offices are located in Santa Monica, California. Scope Industries sold all of the outstanding shares of its wholly owned subsidiary, Scope Beauty Enterprises, Inc., doing business as Marinello Schools of Beauty, to B & H Education, Inc. in March 2004.

About Tetra Tech

Tetra Tech, Inc. provides consulting and engineering services in the United States and internationally. The company operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services. This segment serves federal, state, and local governments; and development agencies in water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and a range of civil infrastructure master planning and engineering design markets. The CIG segment provides early data collection and monitoring, data analysis and information management, feasibility studies and assessments, science and engineering applied research, engineering design, project management, and operations and maintenance services; and environmental remediation and reconstruction services, and industrial water treatment services. This segment serves natural resources, energy, and utilities markets, as well as sustainable infrastructure master planning and engineering design for facilities, transportation, and local development projects. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California.