Head-To-Head Review: ARQ (NASDAQ:ARQ) vs. Orion (NYSE:OEC)

ARQ (NASDAQ:ARQ) and Orion (NYSE:OEC) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Volatility and Risk

ARQ has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Orion has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ARQ and Orion, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARQ	0	0	0	0	N/A
Orion	0	2	2	0	2.50

Orion has a consensus target price of $26.25, indicating a potential upside of 24.64%. Given Orion’s higher probable upside, analysts plainly believe Orion is more favorable than ARQ.

Insider & Institutional Ownership

18.5% of ARQ shares are held by institutional investors. Comparatively, 94.3% of Orion shares are held by institutional investors. 22.2% of ARQ shares are held by insiders. Comparatively, 6.3% of Orion shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares ARQ and Orion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARQ	-8.15%	-4.65%	-3.51%
Orion	4.64%	21.07%	5.47%

Valuation & Earnings

This table compares ARQ and Orion’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARQ	$99.18 million	2.01	-$12.25 million	($0.27)	-20.52
Orion	$1.89 billion	0.65	$103.50 million	$1.48	14.23

Orion has higher revenue and earnings than ARQ. ARQ is trading at a lower price-to-earnings ratio than Orion, indicating that it is currently the more affordable of the two stocks.

Summary

Orion beats ARQ on 10 of the 12 factors compared between the two stocks.

About ARQ

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.

About Orion

Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. It also provides rubber carbon black products for applications in mechanical rubber goods, as well as in tires under the ECORAX brand name; and acetylene-based conductive additives for lithium-ion batteries and other applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.