Head-To-Head Review: Fuel Tech (FTEK) versus H2O Innovation (HEOFF)

Fuel Tech (NASDAQ: FTEK) and H2O Innovation (OTCMKTS:HEOFF) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Analyst Recommendations

How to Become a New Pot Stock Millionaire

This is a summary of current recommendations and price targets for Fuel Tech and H2O Innovation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fuel Tech 0 0 0 0 N/A
H2O Innovation 0 0 2 0 3.00

H2O Innovation has a consensus target price of $2.00, suggesting a potential upside of 128.62%. Given H2O Innovation’s higher possible upside, analysts plainly believe H2O Innovation is more favorable than Fuel Tech.

Profitability

This table compares Fuel Tech and H2O Innovation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fuel Tech -23.04% -9.08% -6.57%
H2O Innovation -5.86% -7.08% -4.09%

Risk & Volatility

Fuel Tech has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, H2O Innovation has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fuel Tech and H2O Innovation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fuel Tech $45.17 million 0.64 -$10.98 million N/A N/A
H2O Innovation $62.38 million 0.56 -$3.86 million ($0.04) -21.87

H2O Innovation has higher revenue and earnings than Fuel Tech.

Insider and Institutional Ownership

21.5% of Fuel Tech shares are held by institutional investors. 13.9% of Fuel Tech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

H2O Innovation beats Fuel Tech on 7 of the 11 factors compared between the two stocks.

About Fuel Tech

Fuel Tech, Inc. is a technology company. The Company is engaged in the development, commercialization and application of technologies for air pollution control, process optimization, combustion efficiency and engineering services. It operates through three segments: Air Pollution Control technology, FUEL CHEM technology and Fuel Conversion. The Air Pollution Control technology segment includes technologies to manage nitrogen oxides (NOx) emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. The FUEL CHEM technology segment uses chemical processes in combination with computational fluid dynamics (CFD) and chemical kinetics modeling (CKM) boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace. The Fuel Conversion segment represents the CARBONITE fuel conversion process and technology.

About H2O Innovation

H2O Innovation Inc. provides integrated water treatment solutions based on membrane filtration technology in Canada, the United States, Spain, China, the United Arab Emirates, Mexico, France, Egypt, and internationally. It designs, manufactures, and markets systems and equipment for the production of drinking water and industrial process water, reclamation and reuse of water, and desalination of seawater and treatment of wastewater. The company also provides products, as well as membrane filtration systems' spare parts, such as pumps, valves, membranes, filters, media, and other replacement parts of water or wastewater treatment system; and specialty chemicals for membrane pre-treatment applications, as well as develops blends for maintenance, preservation, and cleaning of membrane systems. In addition, it offers specialty coagulants for conventional and membrane filtration systems, as well as flocculants; a line of couplings and fittings for industrial and municipal applications; cartridge filter housings, bag filters, strainers, and cartridge filter elements; and maple syrup products and equipment, such as evaporators, reverse osmosis separators, monitoring solutions, membranes, fittings, tubing, tanks, press filters, and other products related to the maple syrup industry. Further, the company provides operation and maintenance services for water and wastewater treatment systems; and public works services, which include street maintenance, drainage maintenance, and solid waste collection, as well as leases containerized water or wastewater treatment systems, and pilot units. It primarily serves municipalities and local governments; communities and private developments; energy and power plants; food and beverages industries; oil and gas markets; mining and workers camps; and other industrial segments. The company was founded in 2000 and is headquartered in Quebec City, Canada. H2O Innovation Inc. is a subsidiary of Amsterdams Effectenkantoor B.V.

Receive News & Ratings for Fuel Tech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fuel Tech and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply