Contrasting Hudson Technologies (NASDAQ:HDSN) & Rush Enterprises (NASDAQ:RUSHA)

Hudson Technologies (NASDAQ:HDSN) and Rush Enterprises (NASDAQ:RUSHA) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

71.3% of Hudson Technologies shares are held by institutional investors. Comparatively, 84.4% of Rush Enterprises shares are held by institutional investors. 1.9% of Hudson Technologies shares are held by company insiders. Comparatively, 12.7% of Rush Enterprises shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Hudson Technologies and Rush Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudson Technologies	3.51%	4.95%	3.81%
Rush Enterprises	3.67%	11.65%	5.84%

Valuation & Earnings

This table compares Hudson Technologies and Rush Enterprises”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Technologies	$246.61 million	0.88	$16.67 million	$0.20	25.80
Rush Enterprises	$7.43 billion	0.70	$263.78 million	$2.21	20.13

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Hudson Technologies and Rush Enterprises, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Technologies	1	2	2	0	2.20
Rush Enterprises	1	1	3	0	2.40

Hudson Technologies currently has a consensus price target of $8.62, indicating a potential upside of 67.15%. Rush Enterprises has a consensus price target of $46.00, indicating a potential upside of 3.42%. Given Hudson Technologies’ higher possible upside, equities analysts plainly believe Hudson Technologies is more favorable than Rush Enterprises.

Risk and Volatility

Hudson Technologies has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Rush Enterprises has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Summary

Rush Enterprises beats Hudson Technologies on 11 of the 14 factors compared between the two stocks.

About Hudson Technologies

Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, engages in the provision of solutions to recurring problems within the refrigeration industry in the United States. The company engages in the sale of refrigerant and industrial gas; provision of refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination and recovery to remove moisture, oils, and other contaminants. It also offers Chiller Chemistry, which integrates several fluid tests of an operating system and the corresponding laboratory results into an engineering report; Fluid Chemistry, an abbreviated version of Chiller Chemistry, which is designed to quickly identify systems that require further examination; SmartEnergy OPS, a web-based real time continuous monitoring system, for measuring, modifying and improving the efficiency of energy systems, including air conditioning and refrigeration systems, in industrial and commercial applications; and ChillSmart, which combines the system optimization with Chiller Chemistry for providing a snapshot of a packaged chiller's operating efficiency and health. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. The company was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.

About Rush Enterprises

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States and Canada. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, and Dennis Eagle. The company also offers new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance products. In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services, body, chassis upfitting, and component installation services; and vehicle telematics products, as well as sells new and used trailers, and tires for use on commercial vehicles. The company serves regional and national fleets, corporations, local and state governments, and owner-operators. It operates a network of centers located in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Ontario. Rush Enterprises, Inc. was incorporated in 1965 and is headquartered in New Braunfels, Texas.