Critical Analysis: ARQ (ARQ) and Its Competitors

ARQ (NASDAQ:ARQ) is one of 19 public companies in the “Miscellaneous chemical products” industry, but how does it contrast to its rivals? We will compare ARQ to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Volatility and Risk

ARQ has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, ARQ’s rivals have a beta of 2.29, suggesting that their average share price is 129% more volatile than the S&P 500.

Insider and Institutional Ownership

18.5% of ARQ shares are owned by institutional investors. Comparatively, 64.8% of shares of all “Miscellaneous chemical products” companies are owned by institutional investors. 22.2% of ARQ shares are owned by company insiders. Comparatively, 15.6% of shares of all “Miscellaneous chemical products” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares ARQ and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARQ	-12.35%	-8.35%	-6.16%
ARQ Competitors	-14.40%	-42.23%	-22.96%

Analyst Ratings

This is a breakdown of current recommendations for ARQ and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARQ	0	0	0	0	N/A
ARQ Competitors	42	369	338	9	2.41

As a group, “Miscellaneous chemical products” companies have a potential upside of 23.96%. Given ARQ’s rivals higher possible upside, analysts clearly believe ARQ has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares ARQ and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ARQ	$99.18 million	-$12.25 million	-14.38
ARQ Competitors	$1.05 billion	$41.01 million	11.92

ARQ’s rivals have higher revenue and earnings than ARQ. ARQ is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

ARQ rivals beat ARQ on 6 of the 10 factors compared.

ARQ Company Profile

Arq, Inc. produces activated carbon products in North America. The company's products include granular activated carbon, powdered and granular activated carbon, and colloidal carbon products; Arq Powder Wetcake, a fine and low-ash coal waste-derived particle; and additives for air emissions control. Its products are used in various applications, including water treatment, ground water remediation, soil sediments, air emissions, and asphalt additives. The company was formerly known as Advanced Emissions Solutions, Inc. and changed its name to Arq, Inc. in February 2024. Arq, Inc. was founded in 1997 and is headquartered in Greenwood Village, Colorado.