Flexible Solutions International (NYSE:FSI) vs. ARQ (NASDAQ:ARQ) Head-To-Head Comparison

ARQ (NASDAQ:ARQ) and Flexible Solutions International (NYSE:FSI) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Valuation and Earnings

This table compares ARQ and Flexible Solutions International’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARQ	$99.18 million	2.48	-$12.25 million	($0.50)	-14.72
Flexible Solutions International	$38.32 million	0.73	$2.78 million	$0.22	10.27

Flexible Solutions International has lower revenue, but higher earnings than ARQ. ARQ is trading at a lower price-to-earnings ratio than Flexible Solutions International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for ARQ and Flexible Solutions International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARQ	0	0	0	0	N/A
Flexible Solutions International	0	0	0	0	N/A

Institutional and Insider Ownership

18.5% of ARQ shares are owned by institutional investors. Comparatively, 54.3% of Flexible Solutions International shares are owned by institutional investors. 22.2% of ARQ shares are owned by insiders. Comparatively, 35.5% of Flexible Solutions International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

ARQ has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Flexible Solutions International has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Profitability

This table compares ARQ and Flexible Solutions International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARQ	-12.35%	-8.35%	-6.16%
Flexible Solutions International	7.24%	7.51%	5.18%

Summary

Flexible Solutions International beats ARQ on 9 of the 11 factors compared between the two stocks.

About ARQ

Arq, Inc. produces activated carbon products in North America. The company's products include granular activated carbon, powdered and granular activated carbon, and colloidal carbon products; Arq Powder Wetcake, a fine and low-ash coal waste-derived particle; and additives for air emissions control. Its products are used in various applications, including water treatment, ground water remediation, soil sediments, air emissions, and asphalt additives. The company was formerly known as Advanced Emissions Solutions, Inc. and changed its name to Arq, Inc. in February 2024. Arq, Inc. was founded in 1997 and is headquartered in Greenwood Village, Colorado.

About Flexible Solutions International

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. Flexible Solutions International, Inc. was incorporated in 1991 and is headquartered in Taber, Canada.