Analyzing Zentek (NASDAQ:ZTEK) & ARQ (NASDAQ:ARQ)

Zentek (NASDAQ:ZTEK) and ARQ (NASDAQ:ARQ) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Zentek and ARQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zentek	0	0	0	0	N/A
ARQ	0	0	0	0	N/A

Insider & Institutional Ownership

0.8% of Zentek shares are held by institutional investors. Comparatively, 18.5% of ARQ shares are held by institutional investors. 22.2% of ARQ shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Zentek and ARQ’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zentek	$50,000.00	2,137.38	-$10.90 million	($0.07)	-15.14
ARQ	$99.18 million	2.66	-$12.25 million	($0.50)	-15.74

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

Risk and Volatility

Zentek has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, ARQ has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares Zentek and ARQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zentek	N/A	-44.98%	-40.90%
ARQ	-12.35%	-8.35%	-6.16%

Summary

ARQ beats Zentek on 6 of the 11 factors compared between the two stocks.

About Zentek

Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compound. In addition, it develops graphene oxide synthesis and graphene synthesis. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Guelph, Canada.

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.