Comparing Strategic Environmental & Energy Resources (OTCMKTS:SENR) and Quest Resource (NASDAQ:QRHC)

Strategic Environmental & Energy Resources (OTCMKTS:SENR) and Quest Resource (NASDAQ:QRHC) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Profitability

This table compares Strategic Environmental & Energy Resources and Quest Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strategic Environmental & Energy Resources	-39.40%	N/A	-142.68%
Quest Resource	-8.89%	-12.96%	-3.70%

Valuation and Earnings

This table compares Strategic Environmental & Energy Resources and Quest Resource”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strategic Environmental & Energy Resources	$4.31 million	0.52	-$1.80 million	($0.03)	-1.13
Quest Resource	$288.53 million	0.14	-$15.06 million	($1.11)	-1.76

Strategic Environmental & Energy Resources has higher earnings, but lower revenue than Quest Resource. Quest Resource is trading at a lower price-to-earnings ratio than Strategic Environmental & Energy Resources, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

48.2% of Quest Resource shares are held by institutional investors. 43.9% of Strategic Environmental & Energy Resources shares are held by insiders. Comparatively, 22.9% of Quest Resource shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Strategic Environmental & Energy Resources and Quest Resource, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strategic Environmental & Energy Resources	0	0	0	0	0.00
Quest Resource	1	3	0	0	1.75

Quest Resource has a consensus target price of $2.25, suggesting a potential upside of 15.38%. Given Quest Resource’s stronger consensus rating and higher possible upside, analysts clearly believe Quest Resource is more favorable than Strategic Environmental & Energy Resources.

Risk and Volatility

Strategic Environmental & Energy Resources has a beta of -1.61, suggesting that its share price is 261% less volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Summary

Quest Resource beats Strategic Environmental & Energy Resources on 7 of the 13 factors compared between the two stocks.

About Strategic Environmental & Energy Resources

Strategic Environmental & Energy Resources, Inc. provides clean-technologies, waste management, and related services in the United States and internationally. It operates through two segments, Environmental Solutions and Solid Waste. The company designs and sells H2SPlus and OdorFilter dry scrubber solutions for management of hydrogen sulfide in biogas, landfill gas, and petroleum processing operations; develops and designs proprietary technologies and systems for conditioning biogas for use as renewable natural gas for a range of applications, such as transportation fuel and natural gas pipeline injection; and develops waste destruction technology using pyrolytic heating process combined with non-thermal plasma assisted oxidation. In addition, it develops renewable natural gas projects; and advanced chemical absorbents and catalysts that enhance the capability of biogas produced from landfill, wastewater treatment, and agricultural digester operations, as well as offers soil amendment pellets. The company serves companies primarily in the oil and gas refineries, landfills, medical waste destruction operations, agricultural companies, and food and beverage companies, as well as other commercial and industrial customers. Strategic Environmental & Energy Resources, Inc. is headquartered in Broomfield, Colorado.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.