Critical Review: ESS Tech (NYSE:GWH) versus Environmental Tectonics (OTCMKTS:ETCC)

Environmental Tectonics (OTCMKTS:ETCCGet Free Report) and ESS Tech (NYSE:GWHGet Free Report) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

Environmental Tectonics has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Environmental Tectonics and ESS Tech, as provided by MarketBeat.

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 price target of $2.14, indicating a potential upside of 219.65%. Given ESS Tech’s higher probable upside, analysts clearly believe ESS Tech is more favorable than Environmental Tectonics.

Insider & Institutional Ownership

46.8% of ESS Tech shares are held by institutional investors. 74.8% of Environmental Tectonics shares are held by insiders. Comparatively, 1.8% of ESS Tech shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Environmental Tectonics and ESS Tech’s top-line revenue, earnings per share (EPS) 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) -4.00
ESS Tech $7.54 million 15.51 -$77.58 million ($0.49) -1.36

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.

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%

Summary

Environmental Tectonics beats ESS Tech on 7 of the 12 factors compared between the two stocks.

About Environmental Tectonics

(Get Free Report)

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

(Get Free Report)

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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