Financial Contrast: Hexcel (NYSE:HXL) and PureCycle Technologies (NYSE:PCT)

Hexcel (NYSE:HXL) and PureCycle Technologies (NYSE:PCT) are both mid-cap aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Valuation and Earnings

This table compares Hexcel and PureCycle Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hexcel $1.50 billion 3.41 $31.70 million $0.25 244.28
PureCycle Technologies N/A N/A -$1.06 million N/A N/A

Hexcel has higher revenue and earnings than PureCycle Technologies.

Profitability

This table compares Hexcel and PureCycle Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hexcel -1.94% -2.80% -1.38%
PureCycle Technologies N/A -14.59% -5.67%

Institutional & Insider Ownership

98.2% of Hexcel shares are owned by institutional investors. Comparatively, 26.3% of PureCycle Technologies shares are owned by institutional investors. 1.4% of Hexcel shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Hexcel and PureCycle Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexcel 5 7 2 0 1.79
PureCycle Technologies 0 0 4 0 3.00

Hexcel currently has a consensus price target of $46.27, indicating a potential downside of 24.24%. PureCycle Technologies has a consensus price target of $33.00, indicating a potential upside of 72.77%. Given PureCycle Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe PureCycle Technologies is more favorable than Hexcel.

Summary

Hexcel beats PureCycle Technologies on 6 of the 10 factors compared between the two stocks.

Hexcel Company Profile

Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. It operates in two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and trains. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, helicopter blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in helicopter blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors and manufacturer representatives in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.

PureCycle Technologies Company Profile

PureCycle Technologies LLC produces recycled polypropylene. It uses a recycling process that separates color, odor, and contaminants from plastic waste feedstock into recycled polypropylene. Its recycling service converts waste plastic into virgin-like plastic. The company was founded in 2015 and is based in Orlando, Florida.

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