Financial Comparison: Sancon Resources Recovery (OTCMKTS:IGSC) vs. LiqTech International (NASDAQ:LIQT)

Sancon Resources Recovery (OTCMKTS:IGSC) and LiqTech International (NASDAQ:LIQT) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Volatility and Risk

Sancon Resources Recovery has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, LiqTech International has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Insider & Institutional Ownership

35.1% of LiqTech International shares are owned by institutional investors. 12.8% of LiqTech International shares are owned by company 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.

Profitability

This table compares Sancon Resources Recovery and LiqTech International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sancon Resources Recovery	13.08%	8.90%	5.81%
LiqTech International	-53.25%	-61.21%	-28.15%

Analyst Ratings

This is a summary of recent ratings and price targets for Sancon Resources Recovery and LiqTech International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sancon Resources Recovery	0	0	0	0	0.00
LiqTech International	1	0	1	0	2.00

LiqTech International has a consensus target price of $4.20, suggesting a potential upside of 150.75%. Given LiqTech International’s stronger consensus rating and higher possible upside, analysts clearly believe LiqTech International is more favorable than Sancon Resources Recovery.

Valuation and Earnings

This table compares Sancon Resources Recovery and LiqTech International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sancon Resources Recovery	$1.74 million	1.98	$200,000.00	N/A	N/A
LiqTech International	$14.60 million	1.10	-$10.35 million	($1.01)	-1.66

Sancon Resources Recovery has higher earnings, but lower revenue than LiqTech International.

Summary

LiqTech International beats Sancon Resources Recovery on 7 of the 12 factors compared between the two stocks.

About Sancon Resources Recovery

IGS Capital Group Limited, through its subsidiary, IGS Mart SDN BHD, operates a convenient store in Malaysia. It operates its store under the Like Mart name. The company was formerly known as Sancon Resources Recovery, Inc. and changed its name to IGS Capital Group Limited in June 2017. The company was incorporated in 2003 and is based in Petaling Jaya, Malaysia. IGS Capital Group Limited is a subsidiary of Pontoon Boat Inc.

About LiqTech International

LiqTech International, Inc., a clean technology company, designs, develops, produces, markets, and sells automated filtering systems, ceramic silicon carbide liquid applications, and diesel particulate air filters in the United States, Canada, Europe, Asia, and South America. The company operates through Water, Ceramics, and Plastics segments. It also manufactures and sells silicon carbide ceramic filtration technologies for liquid and gas purification; and diesel particulate filters for exhaust emission control solutions to the verified retrofit and the original equipment manufacturer market. In addition, the company develops, manufactures, and sells liquid filtration systems, which are used for the marine scrubber systems, filtration of produced water, industrial applications, pool and spa water, food and beverage application, and silicon carbide membrane technology. Further, it provides flexible and plastics manufacturing products for machining, welding, bending, and solvent cementing. LiqTech International, Inc. sells its products primarily to industrial customers through direct sales, systems integrators, distributors, agents, and partners. The company was formerly known as Blue Moose Media, Inc. and changed its name to LiqTech International, Inc. in October 2011. LiqTech International, Inc. was founded in 2000 and is headquartered in Ballerup, Denmark.