Analyzing CECO Environmental (NASDAQ:CECO) and Rotork (OTCMKTS:RTOXF)

Rotork (OTCMKTS:RTOXF) and CECO Environmental (NASDAQ:CECO) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

This table compares Rotork and CECO Environmental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rotork	N/A	N/A	N/A
CECO Environmental	1.70%	13.69%	4.66%

Insider & Institutional Ownership

50.3% of Rotork shares are owned by institutional investors. Comparatively, 68.1% of CECO Environmental shares are owned by institutional investors. 18.4% of CECO Environmental shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Rotork and CECO Environmental”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rotork	N/A	N/A	N/A	$1.13	5.80
CECO Environmental	$803.60 million	3.06	$50.05 million	$0.37	185.35

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

Analyst Ratings

This is a summary of recent recommendations for Rotork and CECO Environmental, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rotork	0	3	0	0	2.00
CECO Environmental	0	1	8	1	3.00

CECO Environmental has a consensus price target of $104.00, suggesting a potential upside of 51.65%. Given CECO Environmental’s stronger consensus rating and higher probable upside, analysts clearly believe CECO Environmental is more favorable than Rotork.

Summary

CECO Environmental beats Rotork on 11 of the 12 factors compared between the two stocks.

About Rotork

Rotork plc designs, manufactures, and markets industrial flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical, process, and industrial markets worldwide. It operates through three segments: Oils & Gas; Water & Power; and Chemical, Process & Industrial segments. The company offers electric, fluid power, and process control actuators. It also provides gearboxes and valve accessories comprising multi-turn and quarter-turn gearboxes, smart position indicators, direct mount chain wheels, valve accessories, roto hammers, and master gear products. In addition, the company offers instrumentation and control products, such as instrument valves, controllers, and measurement products; and pneumatic valves and manifolds, which include air preparation equipment, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. Further, it provides master station, foundation fieldbus, Modbus, Profibus, DeviceNet, HART, ethernet, and control network legacy products; and actuator workshop overhaul, field support, planned shutdown support, and valve automation services. The company operates in the United Kingdom, Italy, rest of Europe, the United States, rest of the Americas, China, and internationally. The company was founded in 1956 and is headquartered in Bath, the United Kingdom.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.