Fuel Tech (NASDAQ:FTEK) and Perma-Pipe International (NASDAQ:PPIH) are both small-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Fuel Tech and Perma-Pipe International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fuel Tech 0 0 0 0 N/A
Perma-Pipe International 0 0 0 0 N/A

Institutional & Insider Ownership

23.2% of Fuel Tech shares are owned by institutional investors. Comparatively, 40.0% of Perma-Pipe International shares are owned by institutional investors. 13.9% of Fuel Tech shares are owned by company insiders. Comparatively, 9.9% of Perma-Pipe International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Fuel Tech has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Perma-Pipe International has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fuel Tech and Perma-Pipe International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fuel Tech $45.17 million 0.68 -$10.98 million N/A N/A
Perma-Pipe International $105.25 million 0.67 -$9.97 million N/A N/A

Perma-Pipe International has higher revenue and earnings than Fuel Tech.

Profitability

This table compares Fuel Tech and Perma-Pipe International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fuel Tech -3.94% -1.24% -0.85%
Perma-Pipe International -5.32% -12.02% -6.14%

Summary

Fuel Tech beats Perma-Pipe International on 5 of the 9 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. It 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 by low and ultra-low NOx burners; over-fire air systems; NOxOUT and HERT selective non-catalytic reduction systems; advanced selective catalytic reduction (SCR) systems; NOxOUT CASCADE and NOxOUT-SCR processes; ULTRA technology; ammonia injection grid and graduated straightening grid systems; and flue gas conditioning systems. The FUEL CHEM Technology segment provides programs to improve the efficiency, reliability, fuel flexibility, 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 (PM2.5), 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, university, and district heating markets, as well as to the owners of boilers, furnaces, and other combustion units. The company was founded in 1987 and is headquartered in Warrenville, Illinois.

About Perma-Pipe International

Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping, and leak detection and location systems. It offers various piping systems, including industrial and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products; insulated and jacketed piping systems for district heating and cooling; and coating and/or insulation of oil and gas gathering flow and long lines for oil and mineral transportation. The company sells its products in the United States, the Middle East, Canada, India, and internationally. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was founded in 1989 and is headquartered in Niles, Illinois.

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