Environmental Tectonics (OTCMKTS:ETCC – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Profitability
This table compares Environmental Tectonics and ESS Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Environmental Tectonics | -6.72% | N/A | -6.57% |
| ESS Tech | -1,028.89% | -71.44% | -53.77% |
Risk & Volatility
Environmental Tectonics has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Environmental Tectonics | 0 | 0 | 0 | 0 | N/A |
| ESS Tech | 0 | 2 | 1 | 0 | 2.33 |
ESS Tech has a consensus target price of $2.14, suggesting a potential upside of 142.68%. Given ESS Tech’s higher possible upside, analysts clearly believe ESS Tech is more favorable than Environmental Tectonics.
Earnings and Valuation
This table compares Environmental Tectonics and ESS Tech’s top-line revenue, earnings per share 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 | ($0.20) | -3.75 |
| ESS Tech | $7.54 million | 20.43 | -$77.58 million | ($0.49) | -1.80 |
Environmental Tectonics has higher revenue and earnings than ESS Tech. Environmental Tectonics is trading at a lower price-to-earnings ratio than ESS Tech, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
46.8% of ESS Tech shares are owned by institutional investors. 74.8% of Environmental Tectonics shares are owned by company insiders. Comparatively, 1.8% of ESS Tech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Environmental Tectonics beats ESS Tech on 7 of the 11 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 ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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