CECO Environmental (NASDAQ:CECO – Get Free Report) and Highway (NASDAQ:HIHO – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Volatility & Risk
CECO Environmental has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Highway has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Institutional and Insider Ownership
68.1% of CECO Environmental shares are held by institutional investors. Comparatively, 13.2% of Highway shares are held by institutional investors. 16.9% of CECO Environmental shares are held by insiders. Comparatively, 32.1% of Highway shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for CECO Environmental and Highway, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CECO Environmental | 1 | 0 | 8 | 1 | 2.90 |
| Highway | 1 | 0 | 0 | 0 | 1.00 |
CECO Environmental currently has a consensus price target of $102.38, suggesting a potential upside of 114.22%. Given CECO Environmental’s stronger consensus rating and higher probable upside, equities research analysts clearly believe CECO Environmental is more favorable than Highway.
Earnings & Valuation
This table compares CECO Environmental and Highway”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CECO Environmental | $774.38 million | 3.61 | $50.05 million | ($0.69) | -69.26 |
| Highway | $4.80 million | 0.70 | -$1.52 million | ($0.32) | -2.26 |
CECO Environmental has higher revenue and earnings than Highway. CECO Environmental is trading at a lower price-to-earnings ratio than Highway, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CECO Environmental and Highway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CECO Environmental | -3.39% | 7.36% | 3.41% |
| Highway | -28.08% | -25.93% | -15.72% |
Summary
CECO Environmental beats Highway on 12 of the 15 factors compared between the two stocks.
About CECO Environmental
CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.
About Highway
Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEMs) and contract manufacturers. It operates through two segments, Metal Stamping and Mechanical OEM; and Electric OEM. The company also trades in plastic injection products; and manufactures and assembles automation equipment. Its products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, the company assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services, including metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. It operates in Hong Kong and China, Europe, North America, and other Asian countries. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong.
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