Analyzing PMFG (PMFG) & Fuel Tech (FTEK)

PMFG (NASDAQ: PMFG) and Fuel Tech (NASDAQ:FTEK) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

27.8% of Fuel Tech shares are held by institutional investors. 13.9% of Fuel Tech shares are held by company 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.

Analyst Ratings

This is a breakdown of recent recommendations for PMFG and Fuel Tech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PMFG 0 0 0 0 N/A
Fuel Tech 0 0 0 0 N/A

Profitability

This table compares PMFG and Fuel Tech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PMFG -17.71% -31.49% -16.26%
Fuel Tech -43.05% -21.12% -15.66%

Earnings & Valuation

This table compares PMFG and Fuel Tech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PMFG N/A N/A N/A ($1.51) -4.08
Fuel Tech $55.16 million 0.42 -$17.38 million ($0.81) -1.17

PMFG has higher earnings, but lower revenue than Fuel Tech. PMFG is trading at a lower price-to-earnings ratio than Fuel Tech, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

PMFG has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Fuel Tech has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

Fuel Tech beats PMFG on 6 of the 8 factors compared between the two stocks.

About PMFG

PMFG, Inc. is a provider of custom-engineered systems and products designed for the delivery of energy. The Company operates in two segments: Process Products and Environmental Systems. The Process Products segment produces specialized systems and products that remove contaminants from gases and liquids, reducing maintenance and extending the life of energy infrastructure. The Process Products segment also includes industrial silencing equipment to control noise pollution on a range of industrial equipment and pulsation dampeners that reduce vibration. The Environmental Systems segment designs, engineers and installs systems for combustion modification, fuel conversions and post-combustion nitrogen oxide (NOX) control for both new and existing sources. The Company’s environmental control systems are used for air pollution abatement and converting burners to accommodate alternative sources of fuel.

About Fuel Tech

Fuel Tech, Inc. is a technology company. The Company is engaged in the development, commercialization and application of technologies for air pollution control, process optimization, combustion efficiency and engineering services. It operates through three segments: Air Pollution Control technology, FUEL CHEM technology and Fuel Conversion. The Air Pollution Control technology segment includes technologies to manage nitrogen oxides (NOx) emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. The FUEL CHEM technology segment uses chemical processes in combination with computational fluid dynamics (CFD) and chemical kinetics modeling (CKM) boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace. The Fuel Conversion segment represents the CARBONITE fuel conversion process and technology.

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