Aduro Clean Technologies (NASDAQ:ADUR) vs. Cabot (NYSE:CBT) Critical Analysis

Cabot (NYSE:CBT) and Aduro Clean Technologies (NASDAQ:ADUR) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Cabot and Aduro Clean Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cabot	1	4	2	0	2.14
Aduro Clean Technologies	1	1	3	1	2.67

Cabot currently has a consensus target price of $89.00, indicating a potential upside of 4.29%. Aduro Clean Technologies has a consensus target price of $29.25, indicating a potential upside of 89.08%. Given Aduro Clean Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Aduro Clean Technologies is more favorable than Cabot.

Risk and Volatility

Cabot has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Aduro Clean Technologies has a beta of 3.27, meaning that its share price is 227% more volatile than the S&P 500.

Profitability

This table compares Cabot and Aduro Clean Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cabot	5.23%	20.29%	9.01%
Aduro Clean Technologies	-6,393.09%	-85.29%	-70.27%

Insider and Institutional Ownership

93.2% of Cabot shares are held by institutional investors. 3.1% of Cabot shares are held by 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 & Earnings

This table compares Cabot and Aduro Clean Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cabot	$3.71 billion	1.19	$331.00 million	$3.55	24.04
Aduro Clean Technologies	$170,000.00	3,213.21	-$8.70 million	($0.44)	-35.16

Cabot has higher revenue and earnings than Aduro Clean Technologies. Aduro Clean Technologies is trading at a lower price-to-earnings ratio than Cabot, indicating that it is currently the more affordable of the two stocks.

Summary

Cabot beats Aduro Clean Technologies on 9 of the 15 factors compared between the two stocks.

About Cabot

Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions. The company also provides specialty carbons for use in inks, coatings, plastics, adhesives, toners, batteries, and displays; conductive additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries. In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

About Aduro Clean Technologies

Aduro Clean Technologies is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil and transform renewable oils into higher-value fuels or renewable chemicals. Aduro Clean Technologies is based in LONDON, Ontario.