Ascent Industries (NASDAQ:ACNT – Get Free Report) and DNOW (NYSE:DNOW – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Risk & Volatility
Ascent Industries has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, DNOW has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Earnings and Valuation
This table compares Ascent Industries and DNOW”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ascent Industries | $177.87 million | 0.85 | -$13.60 million | $0.12 | 135.17 |
| DNOW | $2.37 billion | 0.60 | $81.00 million | $0.87 | 15.60 |
DNOW has higher revenue and earnings than Ascent Industries. DNOW is trading at a lower price-to-earnings ratio than Ascent Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ascent Industries and DNOW’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ascent Industries | 0.85% | -1.63% | -1.09% |
| DNOW | 3.91% | 9.35% | 6.55% |
Analyst Recommendations
This is a summary of current ratings and target prices for Ascent Industries and DNOW, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ascent Industries | 1 | 0 | 0 | 0 | 1.00 |
| DNOW | 0 | 1 | 2 | 1 | 3.00 |
DNOW has a consensus target price of $17.67, suggesting a potential upside of 30.14%. Given DNOW’s stronger consensus rating and higher possible upside, analysts clearly believe DNOW is more favorable than Ascent Industries.
Institutional & Insider Ownership
26.1% of Ascent Industries shares are held by institutional investors. Comparatively, 97.6% of DNOW shares are held by institutional investors. 9.3% of Ascent Industries shares are held by insiders. Comparatively, 2.7% of DNOW shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
DNOW beats Ascent Industries on 12 of the 14 factors compared between the two stocks.
About Ascent Industries
Ascent Industries Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is based in Oak Brook, Illinois.
About DNOW
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
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