Ecovyst (NYSE:ECVT – Get Free Report) and Ecolab (NYSE:ECL – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Profitability
This table compares Ecovyst and Ecolab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ecovyst | -14.34% | 8.93% | 3.38% |
| Ecolab | 12.49% | 22.55% | 8.98% |
Valuation & Earnings
This table compares Ecovyst and Ecolab”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ecovyst | $704.50 million | 1.75 | -$6.65 million | ($0.93) | -11.64 |
| Ecolab | $15.89 billion | 4.95 | $2.11 billion | $6.96 | 39.94 |
Ecolab has higher revenue and earnings than Ecovyst. Ecovyst is trading at a lower price-to-earnings ratio than Ecolab, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
86.7% of Ecovyst shares are held by institutional investors. Comparatively, 74.9% of Ecolab shares are held by institutional investors. 1.5% of Ecovyst shares are held by insiders. Comparatively, 0.0% of Ecolab shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Ecovyst and Ecolab, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ecovyst | 1 | 1 | 4 | 0 | 2.50 |
| Ecolab | 0 | 5 | 12 | 3 | 2.90 |
Ecovyst currently has a consensus target price of $11.60, suggesting a potential upside of 7.16%. Ecolab has a consensus target price of $295.31, suggesting a potential upside of 6.24%. Given Ecovyst’s higher possible upside, analysts clearly believe Ecovyst is more favorable than Ecolab.
Risk & Volatility
Ecovyst has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Ecolab has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Summary
Ecolab beats Ecovyst on 11 of the 15 factors compared between the two stocks.
About Ecovyst
Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.
About Ecolab
Ecolab Inc. provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company operates through three segments: Global Industrial; Global Institutional & Specialty; and Global Healthcare & Life Sciences. The Global Industrial segment offers water treatment and process applications, and cleaning and sanitizing solutions to manufacturing, food and beverage processing, transportation, chemical, metals and mining, power generation, pulp and paper, commercial laundry, petroleum, refining, and petrochemical industries. Its Global Institutional & Specialty segment provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, government and education, and retail industries. The Global Healthcare & Life Sciences segment offers specialized cleaning and sanitizing products to the healthcare, personal care, and pharmaceutical industries, such as infection prevention and surgical solutions, and end-to-end cleaning and contamination control solutions under the Ecolab, Microtek, and Anios brand names. In addition, the company provides pest elimination services to detect, eliminate, and prevent pests, such as rodents and insects in restaurants, food and beverage processors, hotels, grocery operations, and other commercial segments including education, life sciences, and healthcare customers. Further, it offers colloidal silica for binding and polishing applications in semiconductor, catalyst, and aerospace component manufacturing, as well as chemical industries; and products and services that manage wash process through custom designed programs, premium products, dispensing equipment, water and energy management, and reduction, as well as real time data management. It sells its products through field sales and corporate account personnel, distributors, and dealers. Ecolab Inc. was founded in 1923 and is headquartered in Saint Paul, Minnesota.
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