PureCycle Technologies (NASDAQ:PCT – Get Free Report) and Quest Resource (NASDAQ:QRHC – Get Free Report) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider Ownership
63.0% of PureCycle Technologies shares are owned by institutional investors. Comparatively, 48.2% of Quest Resource shares are owned by institutional investors. 21.7% of PureCycle Technologies shares are owned by company insiders. Comparatively, 22.9% of Quest Resource shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares PureCycle Technologies and Quest Resource’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PureCycle Technologies | N/A | -107.05% | -23.78% |
| Quest Resource | -9.34% | -13.12% | -3.98% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PureCycle Technologies | N/A | N/A | -$289.14 million | ($1.69) | -7.69 |
| Quest Resource | $270.71 million | 0.10 | -$15.06 million | ($1.21) | -1.12 |
Quest Resource has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than Quest Resource, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for PureCycle Technologies and Quest Resource, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PureCycle Technologies | 1 | 0 | 4 | 3 | 3.13 |
| Quest Resource | 1 | 3 | 0 | 0 | 1.75 |
PureCycle Technologies presently has a consensus target price of $15.00, indicating a potential upside of 15.47%. Quest Resource has a consensus target price of $2.25, indicating a potential upside of 66.67%. Given Quest Resource’s higher probable upside, analysts clearly believe Quest Resource is more favorable than PureCycle Technologies.
Volatility and Risk
PureCycle Technologies has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.
Summary
Quest Resource beats PureCycle Technologies on 8 of the 14 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 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.
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