Advanced Emissions Solutions (NASDAQ: ADES) and Cemtrex (NASDAQ:CETX) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
This table compares Advanced Emissions Solutions and Cemtrex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Emissions Solutions||78.09%||43.88%||36.34%|
This is a summary of recent recommendations and price targets for Advanced Emissions Solutions and Cemtrex, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Emissions Solutions||0||0||2||0||3.00|
Advanced Emissions Solutions currently has a consensus price target of $19.00, indicating a potential upside of 71.64%. Given Advanced Emissions Solutions’ higher possible upside, analysts clearly believe Advanced Emissions Solutions is more favorable than Cemtrex.
Valuation & Earnings
This table compares Advanced Emissions Solutions and Cemtrex’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advanced Emissions Solutions||$35.69 million||6.44||$27.87 million||$1.56||7.10|
|Cemtrex||$120.62 million||0.26||$4.38 million||N/A||N/A|
Advanced Emissions Solutions has higher earnings, but lower revenue than Cemtrex.
Advanced Emissions Solutions pays an annual dividend of $1.00 per share and has a dividend yield of 9.0%. Cemtrex does not pay a dividend. Advanced Emissions Solutions pays out 64.1% of its earnings in the form of a dividend.
Insider and Institutional Ownership
70.7% of Advanced Emissions Solutions shares are owned by institutional investors. Comparatively, 7.1% of Cemtrex shares are owned by institutional investors. 8.5% of Advanced Emissions Solutions shares are owned by company insiders. Comparatively, 45.0% of Cemtrex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Advanced Emissions Solutions has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Cemtrex has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500.
Advanced Emissions Solutions beats Cemtrex on 11 of the 14 factors compared between the two stocks.
About Advanced Emissions Solutions
ADA-ES, Inc. (ADA) develops, offers, and implements environmental technologies and provides equipment and specialty chemicals that enable coal-fueled power plants to meet emissions regulations by enhancing existing air pollution control equipment. ADA’s wholly owned subsidiaries include Advanced Emissions Solutions, Inc., ADA Intellectual Property, LLC and ADA Environmental Solutions, LLC. ADA holds a 42.5% controlling interest in Clean Coal Solutions, LLC. It operates in three segments: Refined coal (RC), Emission control (EC) and CO2 capture (CC). ADA is a supplier of mercury control equipment and services to the EC markets. It also offers dry sorbent injection systems (DSI) to control SO2 and acid gases. Products, such as the Company’s CyCleanTM and M-45TM technologies, its pre-combustion coal treatment processes that provide electric power generators mercury emission control. In September 2012, it acquired the assets of Bulk Conveyor Specialist Inc. and Bulk Conveyor Services, Inc.
Cemtrex, Inc. is a diversified technology company, which provides solutions to industrial and manufacturing needs. The Company provides manufacturing services of electronic system assemblies; provides broad-based industrial services, instruments and emission monitors for industrial processes, and provides industrial air filtration and environmental control systems. It operates through two segments: Electronics Manufacturing Services (EMS) segment and the Industrial Products & Services (IPS) segment. The Company, through its electronics manufacturing services (EMS) group, provides end to end electronic manufacturing services, which include product design and sustaining engineering services, printed circuit board assembly and production, cabling and wire harnessing, systems integration, testing services, and assembled electronic products. The Industrial Products & Services segment provides single-source services for in plant equipment erection, relocation and maintenance.
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