Select Water Solutions (NYSE:WTTR) & 374Water (NASDAQ:SCWO) Financial Analysis

Select Water Solutions (NYSE:WTTR) and 374Water (NASDAQ:SCWO) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Insider and Institutional Ownership

81.7% of Select Water Solutions shares are owned by institutional investors. Comparatively, 12.2% of 374Water shares are owned by institutional investors. 6.2% of Select Water Solutions shares are owned by company insiders. Comparatively, 16.3% of 374Water shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Select Water Solutions and 374Water”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Select Water Solutions	$1.41 billion	1.52	$21.22 million	$0.21	83.85
374Water	$220,000.00	175.99	-$20.98 million	($1.20)	-1.85

Select Water Solutions has higher revenue and earnings than 374Water. 374Water is trading at a lower price-to-earnings ratio than Select Water Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Select Water Solutions and 374Water, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Water Solutions	0	1	3	1	3.00
374Water	1	0	0	0	1.00

Select Water Solutions presently has a consensus price target of $19.75, indicating a potential upside of 12.16%. Given Select Water Solutions’ stronger consensus rating and higher probable upside, research analysts plainly believe Select Water Solutions is more favorable than 374Water.

Profitability

This table compares Select Water Solutions and 374Water’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Select Water Solutions	1.54%	2.33%	1.37%
374Water	-911.15%	-241.68%	-164.18%

Volatility & Risk

Select Water Solutions has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, 374Water has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Summary

Select Water Solutions beats 374Water on 13 of the 15 factors compared between the two stocks.

About Select Water Solutions

Select Water Solutions, Inc., together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services. The Water Infrastructure segment engages in the recycling, gathering, transferring, and disposal of water through a network of permanent pipeline infrastructure, semi-permanent pipeline infrastructure, water recycling facilities, earthen pits, water sources, and SWDs; provides solids management services; and develops, builds, and operates semi-permanent and permanent infrastructure solutions. The Chemical Technologies segment provides technical solutions, products, and services related to chemical applications in the oil and gas industry. This segment develops, manufactures, and manages logistics; and provides chemicals used in hydraulic fracturing, stimulation, cementing, and well completions for pressure pumpers and oil and gas producers, as well as offers production chemical solutions for underperforming wells, corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. It primarily serves oil and gas producers. The company was formerly known as Select Energy Services, Inc. and changed its name to Select Water Solutions, Inc. in May 2023. Select Water Solutions, Inc. was incorporated in 2016 and is headquartered in Houston, Texas.

About 374Water

374Water Inc. provides a technology that transforms wet wastes into recoverable resources in the United States. The company transforms wet wastes, including sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemicals. It offers AirSCWO systems, a waste stream treatment system based on supercritical water oxidation that are used to treat various hazardous and non-hazardous waste streams. It serves Industrial, agricultural, defense, oil and gas, waste management, sanitation project, environmental remediation and compliance, and municipal markets. 374Water Inc. is based in Durham, North Carolina.