TOMI Environmental Solutions (NASDAQ:TOMZ) & Select Water Solutions (NYSE:WTTR) Critical Review

Select Water Solutions (NYSE:WTTR) and TOMI Environmental Solutions (NASDAQ:TOMZ) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Earnings & Valuation

This table compares Select Water Solutions and TOMI Environmental Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Select Water Solutions	$1.45 billion	0.88	$30.64 million	$0.19	55.21
TOMI Environmental Solutions	$7.74 million	1.96	-$4.48 million	($0.25)	-3.00

Select Water Solutions has higher revenue and earnings than TOMI Environmental Solutions. TOMI Environmental Solutions 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 Ratings

This is a breakdown of current ratings and recommmendations for Select Water Solutions and TOMI Environmental Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Select Water Solutions	0	3	2	1	2.67
TOMI Environmental Solutions	1	1	1	0	2.00

Select Water Solutions currently has a consensus price target of $14.25, indicating a potential upside of 35.84%. TOMI Environmental Solutions has a consensus price target of $3.50, indicating a potential upside of 366.05%. Given TOMI Environmental Solutions’ higher possible upside, analysts plainly believe TOMI Environmental Solutions is more favorable than Select Water Solutions.

Institutional & Insider Ownership

81.7% of Select Water Solutions shares are held by institutional investors. Comparatively, 4.8% of TOMI Environmental Solutions shares are held by institutional investors. 7.6% of Select Water Solutions shares are held by company insiders. Comparatively, 23.5% of TOMI Environmental Solutions shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Select Water Solutions	1.41%	2.26%	1.38%
TOMI Environmental Solutions	-91.40%	-91.39%	-32.35%

Volatility & Risk

Select Water Solutions has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, TOMI Environmental Solutions has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Summary

Select Water Solutions beats TOMI Environmental Solutions on 11 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 TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.