Comparing Sharps Compliance (SMED) and Newater Technology (NEWA)

Sharps Compliance (NASDAQ:SMED) and Newater Technology (NASDAQ:NEWA) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sharps Compliance and Newater Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sharps Compliance 0 1 1 0 2.50
Newater Technology 0 0 0 0 N/A

Sharps Compliance currently has a consensus target price of $4.50, indicating a potential upside of 39.32%. Given Sharps Compliance’s higher probable upside, analysts plainly believe Sharps Compliance is more favorable than Newater Technology.

Earnings and Valuation

This table compares Sharps Compliance and Newater Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sharps Compliance $40.14 million 1.29 -$670,000.00 ($0.04) -80.75
Newater Technology $25.34 million 3.64 $2.59 million N/A N/A

Newater Technology has lower revenue, but higher earnings than Sharps Compliance.

Volatility and Risk

Sharps Compliance has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Newater Technology has a beta of -1.54, indicating that its share price is 254% less volatile than the S&P 500.

Profitability

This table compares Sharps Compliance and Newater Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sharps Compliance -1.66% -2.66% -1.98%
Newater Technology N/A N/A N/A

Insider & Institutional Ownership

20.2% of Sharps Compliance shares are owned by institutional investors. Comparatively, 0.4% of Newater Technology shares are owned by institutional investors. 20.7% of Sharps Compliance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Sharps Compliance beats Newater Technology on 6 of the 11 factors compared between the two stocks.

About Sharps Compliance

Sharps Compliance Corp. provides medical, pharmaceutical, and hazardous waste management services in the United States. It offers Sharps Recovery System for the containment, transportation, treatment, and tracking of medical waste and used healthcare materials generated outside the hospital and health care facility settings; TakeAway Medication Recovery System, a solution that facilitates the proper disposal of unused medications; MedSafe, a solution for the safe collection, transportation, and proper disposal of unwanted and expired prescription medications; and ComplianceTRAC, a Web-based compliance and training program. The company also provides Route-Based Pickup Service, a waste management service, which offers medical and hazardous waste pick-up services; TakeAway Recycle System, a solution for the collection and recycling of single-use medical devices from surgical centers and other healthcare facilities; and Universal Waste Shipback Systems, a solution for the collection, transportation, and recycling of light bulbs, batteries, and other mercury containing devices. In addition, it offers other solutions, such as TakeAway Environmental Return System, SharpsTracer, Sharps Secure, Needle Disposal System, Complete Needle Collection and Disposal System, Pitch-It IV Poles, Asset Return System, and Spill Kit and Recovery System, as well as Sharps MWMS, a medical waste management system. The company serves customers in home health care, retail clinics and immunizing pharmacies, pharmaceutical manufacturers, professional offices, assisted living and long-term care facilities, government, consumers, and commercial markets, as well as distributors. Sharps Compliance Corp. was founded in 1992 and is based in Houston, Texas.

About Newater Technology

Newater Technology, Inc. is a wastewater purification treatment company. The Company is focused on the development, manufacture and sale of disk tube reverse osmosis (DTRO) and disk tube nanofiltration (DTNF) membrane filtration products that are used in the treatment, recycling and discharge of wastewater. The DTRO membrane and DTNF membrane is used to treat and recycle wastewater. The Company also supplies hardware and engineered systems necessary to implement integrated solutions with DTRO and DTNF products. The Company provides engineering support and installation, technical advice and service, and other project-related solutions to filter wastewater into clean water. The company provides services to chemical and energy industries. The Company also offers traditional wastewater treatment solutions, such as activated carbon and resins.

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