Critical Review: Zentek (ZTEK) & The Competition

Zentek (NASDAQ:ZTEKGet Rating) is one of 40 public companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it contrast to its peers? We will compare Zentek to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.

Profitability

This table compares Zentek and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zentek N/A -38.60% -35.82%
Zentek Competitors 4.32% -5.83% 4.77%

Volatility and Risk

Zentek has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Zentek’s peers have a beta of 1.88, indicating that their average stock price is 88% more volatile than the S&P 500.

Institutional & Insider Ownership

48.7% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by institutional investors. 9.9% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Zentek and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zentek N/A -$2.93 million -21.63
Zentek Competitors $1.56 billion $94.87 million 28.24

Zentek’s peers have higher revenue and earnings than Zentek. Zentek is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Zentek and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zentek 0 0 0 0 N/A
Zentek Competitors 234 1048 1446 28 2.46

As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 54.87%. Given Zentek’s peers higher probable upside, analysts clearly believe Zentek has less favorable growth aspects than its peers.

Summary

Zentek peers beat Zentek on 10 of the 10 factors compared.

Zentek Company Profile (Get Rating)

Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite Project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating; and surgical masks, HVAC filters, and personal protective equipment. It is also developing synthesize graphene, graphene oxide, and graphene quantum dots for applications of graphene. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is based in Thunder Bay, Canada.

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