PureCycle Technologies (NASDAQ:PCT) vs. GFL Environmental (NYSE:GFL) Financial Analysis

PureCycle Technologies (NASDAQ:PCT) and GFL Environmental (NYSE:GFL) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Volatility and Risk

PureCycle Technologies has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500. Comparatively, GFL Environmental has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Profitability

This table compares PureCycle Technologies and GFL Environmental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PureCycle Technologies	-2,062.36%	-393.01%	-22.56%
GFL Environmental	3.09%	4.53%	1.78%

Insider & Institutional Ownership

63.0% of PureCycle Technologies shares are held by institutional investors. Comparatively, 64.7% of GFL Environmental shares are held by institutional investors. 18.8% of PureCycle Technologies shares are held by company insiders. Comparatively, 8.7% of GFL Environmental shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for PureCycle Technologies and GFL Environmental, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PureCycle Technologies	1	1	1	1	2.50
GFL Environmental	2	2	12	0	2.62

PureCycle Technologies presently has a consensus price target of $12.25, indicating a potential upside of 101.15%. GFL Environmental has a consensus price target of $54.89, indicating a potential upside of 38.49%. Given PureCycle Technologies’ higher probable upside, analysts plainly believe PureCycle Technologies is more favorable than GFL Environmental.

Earnings and Valuation

This table compares PureCycle Technologies and GFL Environmental”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PureCycle Technologies	$8.35 million	131.91	-$182.57 million	($1.47)	-4.14
GFL Environmental	$4.73 billion	3.00	$2.74 billion	$0.32	123.86

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

Summary

GFL Environmental beats PureCycle Technologies on 10 of the 15 factors compared between the two stocks.

About PureCycle Technologies

PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multiple applications, including packaging and labeling for consumer products, piping, ropes, cabling, and plastic parts for various industries. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.

About GFL Environmental

GFL Environmental Inc. offers non-hazardous solid waste management and environmental services in Canada and the United States. It offers solid waste management, liquid waste management, and soil remediation services, including collection, transportation, transfer, recycling, and disposal services for municipal, residential, and commercial, and industrial customers. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.