Critical Comparison: CVD Equipment (NASDAQ:CVV) and Morgan Advanced Materials (OTCMKTS:MCRUF)

CVD Equipment (NASDAQ:CVV) and Morgan Advanced Materials (OTCMKTS:MCRUF) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

31.6% of CVD Equipment shares are held by institutional investors. 28.7% of CVD Equipment shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for CVD Equipment and Morgan Advanced Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVD Equipment	1	0	0	0	1.00
Morgan Advanced Materials	0	1	0	0	2.00

Profitability

This table compares CVD Equipment and Morgan Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CVD Equipment	-6.18%	-5.59%	-4.81%
Morgan Advanced Materials	N/A	N/A	N/A

Risk & Volatility

CVD Equipment has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Morgan Advanced Materials has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares CVD Equipment and Morgan Advanced Materials”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVD Equipment	$25.79 million	2.17	-$1.59 million	($0.22)	-36.59
Morgan Advanced Materials	$1.31 billion	0.62	$27.83 million	N/A	N/A

Morgan Advanced Materials has higher revenue and earnings than CVD Equipment.

Summary

Morgan Advanced Materials beats CVD Equipment on 6 of the 10 factors compared between the two stocks.

About CVD Equipment

CVD Equipment Corporation, together with its subsidiaries, designs, develops, manufactures, and sells equipment to develop and manufacture materials and coatings in the United States and internationally. It operates through three segments: CVD Equipment, Stainless Design Concepts, and CVD Materials. The CVD Equipment segment offers chemical vapor deposition, physical vapor transport, and thermal process equipment under the FirstNano brand for various markets, such as high power electronics, aerospace advanced materials for gas turbine jet engines, and nanomaterials used in batteries, as well as semiconductors, LEDs, carbon nanotubes, nanowires, solar cells, and other industrial and research applications. The Stainless Design Concepts segment provides ultra-high purity gas and chemical delivery control systems, including gas cylinder storage cabinets, custom gas and chemical delivery systems, gas and liquid valve manifold boxes, and gas isolation boxes for semiconductor fabrication processes, aerospace, solar cells, LEDs, carbon nanotubes, nanowires, and industrial applications. The CVD Materials segment offers products related to advanced materials and coatings, such as MesoPlasma printing services and products comprising heaters, antennas, and sensors to aerospace, satellite, power generation, defense, and other markets. The company also provides annealing, diffusion, and low pressure chemical vapor deposition furnaces; and standard and custom fabricated quartz-ware used in its equipment and other customer tools. The company was incorporated in 1982 and is headquartered in Central Islip, New York.

About Morgan Advanced Materials

Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.