Head-To-Head Survey: Clean Diesel Technologies (CDTI) vs. CECO Environmental (CECE)

Clean Diesel Technologies (NASDAQ: CDTI) and CECO Environmental (NASDAQ:CECE) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Volatility & Risk

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Clean Diesel Technologies has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500. Comparatively, CECO Environmental has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

2.3% of Clean Diesel Technologies shares are owned by institutional investors. Comparatively, 66.3% of CECO Environmental shares are owned by institutional investors. 6.3% of Clean Diesel Technologies shares are owned by insiders. Comparatively, 14.3% of CECO Environmental shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Clean Diesel Technologies and CECO Environmental’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clean Diesel Technologies $28.35 million 0.44 -$5.28 million ($0.33) -2.39
CECO Environmental $345.05 million 0.50 -$3.02 million $0.27 18.33

CECO Environmental has higher revenue and earnings than Clean Diesel Technologies. Clean Diesel Technologies is trading at a lower price-to-earnings ratio than CECO Environmental, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Clean Diesel Technologies and CECO Environmental, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clean Diesel Technologies 0 1 1 0 2.50
CECO Environmental 0 2 1 0 2.33

Clean Diesel Technologies presently has a consensus price target of $2.50, suggesting a potential upside of 216.46%. CECO Environmental has a consensus price target of $7.00, suggesting a potential upside of 41.41%. Given Clean Diesel Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Clean Diesel Technologies is more favorable than CECO Environmental.

Profitability

This table compares Clean Diesel Technologies and CECO Environmental’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clean Diesel Technologies -18.63% -96.00% -33.90%
CECO Environmental -0.88% 4.81% 2.01%

Dividends

CECO Environmental pays an annual dividend of $0.15 per share and has a dividend yield of 3.0%. Clean Diesel Technologies does not pay a dividend. CECO Environmental pays out 55.6% of its earnings in the form of a dividend.

Summary

CECO Environmental beats Clean Diesel Technologies on 11 of the 15 factors compared between the two stocks.

Clean Diesel Technologies Company Profile

CDTI Advanced Materials, Inc. provides technology and solutions to the automotive emissions control markets in the United States, Canada, Sweden, France, Japan, Asia, and the United Kingdom. Its catalyst products include diesel oxidation catalysts, catalyzed diesel particulate filters, and selective catalytic reduction catalysts for emissions control from diesel engine applications; and three-way catalysts. The company also provides powder materials under the BMARS, Spinel, and MPC names for use in catalyst products for emission control from gasoline engines; and catalyst products for the control of carbon monoxide, hydrocarbons, particulate matter, and nitrogen oxide in light and heavy duty applications, as well as for energy applications. In addition, it develops a suite of high performance technologies that are offered in powder form to catalyst suppliers for inclusion in their manufacturing processes. The company supplies its coated substrates directly to exhaust systems manufacturers; catalyst technologies to the original equipment manufacturer (OEM) segment, including automakers, heavy duty truck manufacturers, catalyst manufacturers, as well as aftermarket participants, including distributors, integrators, and retrofitters; and emissions control products to automotive aftermarket suppliers and distributors under the Durafit brand. The company markets and sells its products through a network of dealers, independent distributors, and retailers. CDTI Advanced Materials, Inc. was founded in 1996 and is headquartered in Oxnard, California.

CECO Environmental Company Profile

CECO Environmental Corp. provides critical solutions to the environmental, energy, and fluid handling and filtration industries worldwide. The company operates through three segments: Energy, Environmental, and Fluid Handling and Filtration. The Energy segment offers gas turbine exhaust systems, dampers and diverters, gas and liquid separation and filtration equipment, selective catalytic reduction and selective non-catalytic reduction systems, acoustical components and silencers, secondary separators, and expansion joints for the power and petrochemical industries. The Environmental segment designs and manufactures cyclone systems; scrubbers; regenerative thermal and catalytic oxidizers; dust collectors and baghouses; standard and engineered industrial ducting products; fabric filters and cartridge collectors; ventilation and exhaust systems for emissions and contaminants; and process cooling systems for steel in rolling mills. This segment also provides component parts for industrial air systems; and alternatives to traditional duct components, as well as custom metal engineered fabrication services. The Fluid Handling and Filtration segment designs and manufactures centrifugal pumps for corrosive, abrasive, and high temperature liquids; filter products for air and liquid filtration; precious metal recovery systems; carbonate precipitators; and air movement and exhaust systems for use in the aquarium/aquaculture, plating and metal finishing, food and beverage, chemical/petrochemical, wastewater treatment, desalination, and pharmaceutical markets. The company markets its products and services to natural gas processors, refineries, power generators, boiler manufacturers, and compressor manufacturers; and transmission and distribution, metals and minerals, industrial manufacturing, engineering, and construction companies directly and through sales representatives. CECO Environmental Corp. was founded in 1966 and is headquartered in Dallas, Texas.

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