Contrasting CECO Environmental (NASDAQ:CECO) & Atmus Filtration Technologies (NYSE:ATMU)

CECO Environmental (NASDAQ:CECO) and Atmus Filtration Technologies (NYSE:ATMU) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

68.1% of CECO Environmental shares are held by institutional investors. Comparatively, 32.7% of Atmus Filtration Technologies shares are held by institutional investors. 16.9% of CECO Environmental shares are held by company insiders. Comparatively, 0.2% of Atmus Filtration Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CECO Environmental and Atmus Filtration Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CECO Environmental	1	0	7	0	2.75
Atmus Filtration Technologies	0	3	3	0	2.50

CECO Environmental currently has a consensus price target of $52.60, indicating a potential upside of 8.45%. Atmus Filtration Technologies has a consensus price target of $45.60, indicating a potential downside of 0.87%. Given CECO Environmental’s stronger consensus rating and higher possible upside, equities analysts plainly believe CECO Environmental is more favorable than Atmus Filtration Technologies.

Valuation & Earnings

This table compares CECO Environmental and Atmus Filtration Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CECO Environmental	$557.93 million	3.07	$12.96 million	$1.43	33.92
Atmus Filtration Technologies	$1.67 billion	2.26	$185.60 million	$2.26	20.35

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

Risk and Volatility

CECO Environmental has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Atmus Filtration Technologies has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Profitability

This table compares CECO Environmental and Atmus Filtration Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CECO Environmental	7.99%	10.00%	3.39%
Atmus Filtration Technologies	11.22%	83.23%	17.32%

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.

About Atmus Filtration Technologies

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; and fuel water separators and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users. Its products are used in on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. The company was founded in 1958 and is headquartered in Nashville, Tennessee.