Analyzing Environmental Tectonics (OTCMKTS:ETCC) and Solid Power (NASDAQ:SLDP)

Environmental Tectonics (OTCMKTS:ETCC) and Solid Power (NASDAQ:SLDP) are both aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Risk and Volatility

Environmental Tectonics has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Institutional & Insider Ownership

25.6% of Solid Power shares are owned by institutional investors. 74.8% of Environmental Tectonics shares are owned by insiders. Comparatively, 6.8% of Solid Power shares are owned by 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.

Valuation & Earnings

This table compares Environmental Tectonics and Solid Power’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Environmental Tectonics	$26.34 million	N/A	-$1.56 million	($0.17)	-4.08
Solid Power	$15.71 million	24.19	-$9.56 million	($0.25)	-8.52

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

Analyst Ratings

This is a summary of recent recommendations for Environmental Tectonics and Solid Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Environmental Tectonics	0	0	0	0	N/A
Solid Power	1	5	2	0	2.13

Solid Power has a consensus target price of $3.75, suggesting a potential upside of 76.06%. Given Solid Power’s higher probable upside, analysts plainly believe Solid Power is more favorable than Environmental Tectonics.

Profitability

This table compares Environmental Tectonics and Solid Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Environmental Tectonics	-7.18%	N/A	-5.97%
Solid Power	-281.63%	-8.13%	-7.62%

Summary

Environmental Tectonics beats Solid Power on 8 of the 12 factors compared between the two stocks.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sell its sulfide-based solid electrolyte and to license its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.