Linde (NASDAQ:LIN – Get Free Report) and Ecovyst (NYSE:ECVT – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
Institutional & Insider Ownership
82.8% of Linde shares are held by institutional investors. Comparatively, 86.7% of Ecovyst shares are held by institutional investors. 0.3% of Linde shares are held by company insiders. Comparatively, 1.8% of Ecovyst shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Linde has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Linde | $33.99 billion | 6.95 | $6.90 billion | $15.06 | 33.93 |
| Ecovyst | $723.50 million | 1.98 | -$71.13 million | ($0.55) | -23.84 |
Linde has higher revenue and earnings than Ecovyst. Ecovyst is trading at a lower price-to-earnings ratio than Linde, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Linde and Ecovyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Linde | 20.44% | 19.80% | 9.17% |
| Ecovyst | -7.71% | 11.58% | 4.76% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Linde and Ecovyst, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Linde | 0 | 1 | 10 | 1 | 3.00 |
| Ecovyst | 1 | 1 | 4 | 0 | 2.50 |
Linde currently has a consensus price target of $541.91, indicating a potential upside of 6.04%. Ecovyst has a consensus price target of $14.20, indicating a potential upside of 8.31%. Given Ecovyst’s higher probable upside, analysts clearly believe Ecovyst is more favorable than Linde.
Summary
Linde beats Ecovyst on 11 of the 15 factors compared between the two stocks.
About Linde
Linde plc operates as an industrial gas company in the Americas, Europe, the Middle East, Africa, Asia, and South Pacific. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as air separation, hydrogen, synthesis, olefin, and natural gas plants. It serves a range of industries, including healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics. The company was founded in 1879 and is based in Woking, the United Kingdom.
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.
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