Comparing Heritage-Crystal Clean (NASDAQ:HCCI) and Li-Cycle (NYSE:LICY)

Li-Cycle (NYSE:LICY) and Heritage-Crystal Clean (NASDAQ:HCCI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

39.3% of Li-Cycle shares are owned by institutional investors. Comparatively, 62.9% of Heritage-Crystal Clean shares are owned by institutional investors. 8.9% of Heritage-Crystal Clean shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Li-Cycle and Heritage-Crystal Clean, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Li-Cycle 0 1 4 0 2.80
Heritage-Crystal Clean 0 0 5 0 3.00

Li-Cycle currently has a consensus target price of $13.60, suggesting a potential upside of 38.07%. Heritage-Crystal Clean has a consensus target price of $31.40, suggesting a potential upside of 14.68%. Given Li-Cycle’s higher probable upside, analysts clearly believe Li-Cycle is more favorable than Heritage-Crystal Clean.

Profitability

This table compares Li-Cycle and Heritage-Crystal Clean’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Li-Cycle N/A -291.66% -62.65%
Heritage-Crystal Clean 7.61% 12.41% 7.74%

Earnings & Valuation

This table compares Li-Cycle and Heritage-Crystal Clean’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Li-Cycle N/A N/A N/A N/A N/A
Heritage-Crystal Clean $405.95 million 1.63 $11.94 million $0.38 72.05

Heritage-Crystal Clean has higher revenue and earnings than Li-Cycle.

Summary

Heritage-Crystal Clean beats Li-Cycle on 8 of the 9 factors compared between the two stocks.

About Li-Cycle

Peridot Acquisition Corp. is a blank check company. It formed for the purpose of merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Peridot Acquisition Corp. is based in Houston, Texas.

About Heritage-Crystal Clean

Heritage-Crystal Clean, Inc. engages in the provision of parts cleaning and waste management services to the manufacturing and vehicle service sectors. It operates through the Environmental Services, and Oil Business segments. The Environmental Services segment includes parts cleaning, containerized waste management, vacuum truck services, antifreeze recycling activities, and field services. The Oil Business segment comprises of used oil collection, recycled fuel oil sales, used oil re-refining activities, and used oil filter removal and disposal services. The company was founded by Joseph Chalhoub in 1999 and is headquartered in Elgin, IL.

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