Loop Industries (NASDAQ:LOOP – Get Free Report) and Climb Global Solutions (NASDAQ:CLMB – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Profitability
This table compares Loop Industries and Climb Global Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Loop Industries | -120.79% | N/A | -18.36% |
| Climb Global Solutions | 3.44% | 26.52% | 6.49% |
Institutional and Insider Ownership
4.9% of Loop Industries shares are owned by institutional investors. Comparatively, 49.7% of Climb Global Solutions shares are owned by institutional investors. 45.9% of Loop Industries shares are owned by insiders. Comparatively, 6.1% of Climb Global Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Loop Industries | 0 | 0 | 0 | 0 | 0.00 |
| Climb Global Solutions | 0 | 2 | 1 | 0 | 2.33 |
Climb Global Solutions has a consensus price target of $136.00, indicating a potential upside of 17.02%. Given Climb Global Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Climb Global Solutions is more favorable than Loop Industries.
Risk and Volatility
Loop Industries has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Climb Global Solutions has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.
Valuation & Earnings
This table compares Loop Industries and Climb Global Solutions”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Loop Industries | $10.89 million | 5.55 | -$15.06 million | ($0.06) | -20.83 |
| Climb Global Solutions | $465.61 million | 1.15 | $18.61 million | $4.65 | 24.99 |
Climb Global Solutions has higher revenue and earnings than Loop Industries. Loop Industries is trading at a lower price-to-earnings ratio than Climb Global Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
Climb Global Solutions beats Loop Industries on 11 of the 14 factors compared between the two stocks.
About Loop Industries
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.
About Climb Global Solutions
Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions; and provides cloud solutions and resells software, hardware, and services under the name Grey Matter. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers. In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. It markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials. The company was formerly known as Wayside Technology Group, Inc. and changed its name to Climb Global Solutions Inc. in October 2022. Climb Global Solutions Inc. was incorporated in 1982 and is headquartered in Eatontown, New Jersey.
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