Critical Survey: Fuel Tech (NASDAQ:FTEK) & Atmus Filtration Technologies (NYSE:ATMU)

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

Institutional & Insider Ownership

20.9% of Fuel Tech shares are held by institutional investors. Comparatively, 32.7% of Atmus Filtration Technologies shares are held by institutional investors. 10.0% of Fuel Tech shares are held by insiders. Comparatively, 0.2% of Atmus Filtration Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Fuel Tech has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Atmus Filtration Technologies has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fuel Tech	-12.17%	-7.29%	-6.32%
Atmus Filtration Technologies	11.57%	76.84%	17.36%

Valuation and Earnings

This table compares Fuel Tech and Atmus Filtration Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fuel Tech	$25.13 million	2.11	-$1.94 million	($0.09)	-19.00
Atmus Filtration Technologies	$1.67 billion	2.56	$185.60 million	$2.40	21.81

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

Analyst Recommendations

This is a breakdown of recent ratings for Fuel Tech and Atmus Filtration Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fuel Tech	1	0	1	0	2.00
Atmus Filtration Technologies	0	2	3	1	2.83

Fuel Tech currently has a consensus target price of $4.00, indicating a potential upside of 133.92%. Atmus Filtration Technologies has a consensus target price of $49.00, indicating a potential downside of 6.39%. Given Fuel Tech’s higher possible upside, research analysts plainly believe Fuel Tech is more favorable than Atmus Filtration Technologies.

Summary

Atmus Filtration Technologies beats Fuel Tech on 13 of the 15 factors compared between the two stocks.

About Fuel Tech

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. The company operates through Air Pollution Control Technology and FUEL CHEM Technology segments. The Air Pollution Control Technology segment offers technologies to reduce nitrogen oxide (NOx) emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources; NOxOUT and HERT selective non-catalytic reduction systems; selective catalytic reduction systems comprising ammonia injection grid, and graduated straightening grid systems; I-NOx systems; ESP Processes and Services; ULTRA technology; and flue gas conditioning systems. The FUEL CHEM Technology segment provides programs to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity, and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter, sulfur dioxide, and carbon dioxide through the addition of chemicals into the furnace using TIFI targeted in-furnace injection technology. This segment offers its FUEL CHEM program for plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, and university and district heating markets; and the owners of boilers, furnaces, and other combustion units. Fuel Tech, Inc. was incorporated in 1987 and is headquartered in Warrenville, Illinois.

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.