Head-To-Head Review: 374Water (NASDAQ:SCWO) versus TOMI Environmental Solutions (NASDAQ:TOMZ)

TOMI Environmental Solutions (NASDAQ:TOMZ) and 374Water (NASDAQ:SCWO) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Valuation and Earnings

This table compares TOMI Environmental Solutions and 374Water”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOMI Environmental Solutions	$7.74 million	2.07	-$4.48 million	($0.25)	-3.17
374Water	$1.91 million	22.24	-$12.43 million	($1.20)	-2.09

TOMI Environmental Solutions has higher revenue and earnings than 374Water. TOMI Environmental Solutions is trading at a lower price-to-earnings ratio than 374Water, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TOMI Environmental Solutions and 374Water, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOMI Environmental Solutions	1	1	1	0	2.00
374Water	1	0	0	0	1.00

TOMI Environmental Solutions currently has a consensus price target of $3.50, indicating a potential upside of 341.92%. Given TOMI Environmental Solutions’ stronger consensus rating and higher probable upside, research analysts clearly believe TOMI Environmental Solutions is more favorable than 374Water.

Profitability

This table compares TOMI Environmental Solutions and 374Water’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOMI Environmental Solutions	-91.40%	-91.39%	-32.35%
374Water	-911.15%	-160.15%	-118.22%

Insider & Institutional Ownership

4.8% of TOMI Environmental Solutions shares are owned by institutional investors. Comparatively, 12.2% of 374Water shares are owned by institutional investors. 23.5% of TOMI Environmental Solutions shares are owned by insiders. Comparatively, 16.3% of 374Water shares are owned by 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.

Volatility & Risk

TOMI Environmental Solutions has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, 374Water has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Summary

TOMI Environmental Solutions beats 374Water on 11 of the 14 factors compared between the two stocks.

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.

About 374Water

374Water Inc. provides a technology that transforms wet wastes into recoverable resources in the United States. The company transforms wet wastes, including sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemicals. It offers AirSCWO systems, a waste stream treatment system based on supercritical water oxidation that are used to treat various hazardous and non-hazardous waste streams. It serves Industrial, agricultural, defense, oil and gas, waste management, sanitation project, environmental remediation and compliance, and municipal markets. 374Water Inc. is based in Durham, North Carolina.