CECO Environmental Corp. (NASDAQ: CECE) and LiqTech International (NYSE:LIQT) are both small-cap industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

67.9% of CECO Environmental Corp. shares are owned by institutional investors. 14.3% of CECO Environmental Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

CECO Environmental Corp. pays an annual dividend of $0.30 per share and has a dividend yield of 4.0%. LiqTech International does not pay a dividend. CECO Environmental Corp. pays out -25.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares CECO Environmental Corp. and LiqTech International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CECO Environmental Corp. $388.10 million 0.67 $49.13 million ($1.16) -6.50
LiqTech International $12.15 million 1.46 -$5.38 million N/A N/A

CECO Environmental Corp. has higher revenue and earnings than LiqTech International.

Analyst Recommendations

This is a summary of current recommendations and price targets for CECO Environmental Corp. and LiqTech International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CECO Environmental Corp. 0 3 0 1 2.50
LiqTech International 0 0 0 0 N/A

CECO Environmental Corp. currently has a consensus price target of $12.33, suggesting a potential upside of 63.57%. Given CECO Environmental Corp.’s higher possible upside, equities analysts clearly believe CECO Environmental Corp. is more favorable than LiqTech International.

Profitability

This table compares CECO Environmental Corp. and LiqTech International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CECO Environmental Corp. -10.27% 14.60% 5.97%
LiqTech International -40.75% -80.04% -42.36%

Summary

CECO Environmental Corp. beats LiqTech International on 11 of the 12 factors compared between the two stocks.

About CECO Environmental Corp.

CECO Environmental Corp. is a provider of engineered technologies to the environmental, energy, and fluid handling and filtration industrial segments. The Company is focused on engineering, designing, building and installing systems that capture, clean and destroy airborne contaminants from industrial facilities, as well as equipment that controls emissions from such facilities, and fluid handling and filtration systems. Its Environmental segment is engaged in the design and manufacture of product recovery and air pollution control technologies that enable its customers to meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. Its Energy segment provides customized solutions for the power and petrochemical industry. Its Fluid Handling and Filtration segment provides the design and manufacture of pump, filtration and fume exhaust solutions.

About LiqTech International

LiqTech International, Inc. is a clean technology company that provides technologies for gas and liquid purification by manufacturing ceramic silicon carbide filters. The Company develops and manufactures products of re-crystallized silicon carbide. It specializes in two business areas, which include ceramic membranes for liquid filtration, and diesel particulate filters (DPFs) for the control of soot exhaust particles from diesel engines. Under the LiqTech, Cometas and Provital brand names, it manufactures and sells ceramic silicon carbide membranes and systems for liquid filtration using silicon carbide technology that focus on hydrocarbon production-derived contaminated water and pre-filtration for reverse osmosis. It offers DPFs for exhaust emission control solutions to the retrofit and the original equipment manufacturer markets. It also offers Kiln furniture, which refers to various items used in a kiln to support ceramics that maximizes the number of items for each firing.

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