Critical Analysis: ARQ (ARQ) vs. Its Competitors

ARQ (NASDAQ:ARQ) is one of 18 public companies in the “Miscellaneous chemical products” industry, but how does it weigh in compared to its peers? We will compare ARQ to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Institutional and Insider Ownership

18.5% of ARQ shares are owned by institutional investors. Comparatively, 62.3% of shares of all “Miscellaneous chemical products” companies are owned by institutional investors. 22.2% of ARQ shares are owned by insiders. Comparatively, 16.7% of shares of all “Miscellaneous chemical products” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for ARQ and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARQ	0	0	0	0	N/A
ARQ Competitors	42	324	252	5	2.35

As a group, “Miscellaneous chemical products” companies have a potential upside of 34.80%. Given ARQ’s peers higher possible upside, analysts plainly believe ARQ has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares ARQ and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ARQ	$99.18 million	-$12.25 million	-15.68
ARQ Competitors	$845.93 million	$12.16 million	11.84

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

Risk and Volatility

ARQ has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, ARQ’s peers have a beta of 1.22, suggesting that their average share price is 22% more volatile than the S&P 500.

Profitability

This table compares ARQ and its peers’ 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	-16.73%	-48.39%	-25.93%

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.