Quest Resource (NASDAQ:QRHC) and Montrose Environmental Group (NYSE:ONT) Head-To-Head Contrast

Montrose Environmental Group (NYSE:ONT) and Quest Resource (NASDAQ:QRHC) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Montrose Environmental Group and Quest Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Montrose Environmental Group	0.71%	5.61%	2.61%
Quest Resource	-3.00%	-12.30%	-3.39%

Institutional and Insider Ownership

87.9% of Montrose Environmental Group shares are held by institutional investors. Comparatively, 48.2% of Quest Resource shares are held by institutional investors. 10.4% of Montrose Environmental Group shares are held by company insiders. Comparatively, 19.6% of Quest Resource shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Montrose Environmental Group and Quest Resource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montrose Environmental Group	$830.54 million	0.87	-$840,000.00	$0.05	398.00
Quest Resource	$250.22 million	0.11	-$15.38 million	($0.34)	-3.85

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

Volatility and Risk

Montrose Environmental Group has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Montrose Environmental Group and Quest Resource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montrose Environmental Group	1	2	2	0	2.20
Quest Resource	1	2	0	0	1.67

Montrose Environmental Group currently has a consensus target price of $23.00, indicating a potential upside of 15.58%. Quest Resource has a consensus target price of $2.25, indicating a potential upside of 71.76%. Given Quest Resource’s higher possible upside, analysts plainly believe Quest Resource is more favorable than Montrose Environmental Group.

Summary

Montrose Environmental Group beats Quest Resource on 12 of the 14 factors compared between the two stocks.

About Montrose Environmental Group

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.