Orion (NYSE:OEC) versus Ecovyst (NYSE:ECVT) Critical Contrast

Orion (NYSE:OEC) and Ecovyst (NYSE:ECVT) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations for Orion and Ecovyst, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion	4	1	0	0	1.20
Ecovyst	1	1	4	0	2.50

Orion currently has a consensus target price of $6.00, suggesting a potential upside of 9.17%. Ecovyst has a consensus target price of $11.60, suggesting a potential upside of 17.11%. Given Ecovyst’s stronger consensus rating and higher probable upside, analysts clearly believe Ecovyst is more favorable than Orion.

Valuation and Earnings

This table compares Orion and Ecovyst”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion	$1.83 billion	0.17	$44.20 million	($0.58)	-9.48
Ecovyst	$704.50 million	1.60	-$6.65 million	($0.93)	-10.65

Orion has higher revenue and earnings than Ecovyst. Ecovyst is trading at a lower price-to-earnings ratio than Orion, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Orion has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

94.3% of Orion shares are held by institutional investors. Comparatively, 86.7% of Ecovyst shares are held by institutional investors. 2.7% of Orion shares are held by company insiders. Comparatively, 1.5% of Ecovyst shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Orion and Ecovyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion	-1.74%	14.90%	3.45%
Ecovyst	-14.34%	8.93%	3.38%

Summary

Orion beats Ecovyst on 9 of the 14 factors compared between the two stocks.

About Orion

Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. It also provides rubber carbon black products for applications in mechanical rubber goods, as well as in tires under the ECORAX brand name; and acetylene-based conductive additives for lithium-ion batteries and other applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

About Ecovyst

Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.