Comparing Sims Metal Management (OTCMKTS:SMSMY) & PureCycle Technologies (NASDAQ:PCT)

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

Profitability

This table compares Sims Metal Management and PureCycle Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sims Metal Management	N/A	N/A	N/A
PureCycle Technologies	N/A	-143.06%	-23.17%

Insider & Institutional Ownership

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

Earnings & Valuation

This table compares Sims Metal Management and PureCycle Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sims Metal Management	$4.85 billion	0.42	-$12.30 million	N/A	N/A
PureCycle Technologies	N/A	N/A	-$289.14 million	($1.46)	-6.10

Sims Metal Management has higher revenue and earnings than PureCycle Technologies.

Volatility & Risk

Sims Metal Management has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sims Metal Management and PureCycle Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sims Metal Management	1	0	0	0	1.00
PureCycle Technologies	1	1	3	2	2.86

PureCycle Technologies has a consensus price target of $13.67, suggesting a potential upside of 53.56%. Given PureCycle Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe PureCycle Technologies is more favorable than Sims Metal Management.

Summary

PureCycle Technologies beats Sims Metal Management on 7 of the 11 factors compared between the two stocks.

About Sims Metal Management

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, Bangladesh, China, Turkey, the United States, and internationally. The company operates through six segments: North America Metals, Investment in SA Recycling, Australia/New Zealand Metals, UK Metals, Global Trading, and Sims Lifecycle Services. It is involved in the collection, processing, and trading of iron and steel secondary raw materials; and other metal alloys and residues, principally aluminum, lead, copper, zinc, and nickel bearing materials. The company also engages in the provision of environmentally responsible solutions for the disposal of post-consumer electronic products, such as information technology assets recycled for commercial customers; and environmentally responsible recycling of negative value materials, including electronic equipment. In addition, it provides secondary processing and other services comprising recycling of municipal curbside materials, stevedoring, and other sources of service. The company was founded in 1917 and is headquartered in Mascot, Australia.

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.