Financial Review: QualTek Services (NASDAQ:QTEK) & OriginClear (OTCMKTS:OCLN)

QualTek Services (NASDAQ:QTEKGet Rating) and OriginClear (OTCMKTS:OCLNGet Rating) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares QualTek Services and OriginClear’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QualTek Services -4.83% N/A -7.40%
OriginClear -103.99% N/A -197.92%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for QualTek Services and OriginClear, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QualTek Services 0 1 0 0 2.00
OriginClear 0 0 0 0 N/A

QualTek Services presently has a consensus price target of $3.50, suggesting a potential upside of 1,888.64%. Given QualTek Services’ higher probable upside, research analysts clearly believe QualTek Services is more favorable than OriginClear.

Institutional & Insider Ownership

4.6% of QualTek Services shares are held by institutional investors. 62.1% of QualTek Services shares are held by insiders. Comparatively, 0.4% of OriginClear shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

QualTek Services has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, OriginClear has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares QualTek Services and OriginClear’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QualTek Services $753.86 million 0.01 -$36.42 million ($37.65) 0.00
OriginClear $10.38 million 1.18 -$10.79 million $0.01 1.00

OriginClear has lower revenue, but higher earnings than QualTek Services. QualTek Services is trading at a lower price-to-earnings ratio than OriginClear, indicating that it is currently the more affordable of the two stocks.

Summary

QualTek Services beats OriginClear on 6 of the 11 factors compared between the two stocks.

About QualTek Services

(Get Rating)

QualTek Services Inc. provides communications infrastructure, power grid modernization, and renewable solutions to telecommunications and utilities industries in North America. It operates in two segments, Telecom, and Renewables & Recovery Logistics. The Telecom segment engages in the installation, project management, maintenance, real estate, and site acquisition; fiber optic aerial and underground installation, fiber optic splicing, termination and testing, new installation, engineering, and fulfillment services to telecommunication companies; and electrical contracting, and utility construction and maintenance services to municipalities, electric membership cooperatives, and electric-utility companies, including the construction and maintenance of overhead and underground distribution systems. The Renewables and Recovery Logistics segment offers installation, testing, and maintenance for wind farms, solar farms, and fiber optic grids; continuity and disaster relief services to telecommunications and power utility companies; and business-as-usual services, such as generator storage, as well as repair and cell maintenance services. The company was founded in 2012 and is headquartered in Blue Bell, Pennsylvania.

About OriginClear

(Get Rating)

OriginClear, Inc. engages in the provision and development of water cleanup technology. The company was founded by T. Riggs Eckelberry and Nicholas Eckelberry on June 1, 2007 and is headquartered in Clearwater, FL.

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