PPG Industries (NYSE:PPG – Get Free Report) and PureCycle Technologies (NASDAQ:PCT – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for PPG Industries and PureCycle Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PPG Industries | 0 | 9 | 8 | 0 | 2.47 |
| PureCycle Technologies | 1 | 1 | 1 | 0 | 2.00 |
PPG Industries presently has a consensus price target of $126.06, indicating a potential upside of 19.68%. PureCycle Technologies has a consensus price target of $11.75, indicating a potential upside of 187.29%. Given PureCycle Technologies’ higher possible upside, analysts plainly believe PureCycle Technologies is more favorable than PPG Industries.
Risk & Volatility
Profitability
This table compares PPG Industries and PureCycle Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PPG Industries | 9.57% | 21.07% | 7.80% |
| PureCycle Technologies | -1,618.84% | -612.39% | -22.08% |
Insider and Institutional Ownership
81.9% of PPG Industries shares are owned by institutional investors. Comparatively, 63.0% of PureCycle Technologies shares are owned by institutional investors. 0.3% of PPG Industries shares are owned by company insiders. Comparatively, 18.8% of PureCycle Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares PPG Industries and PureCycle Technologies”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PPG Industries | $15.88 billion | 1.48 | $1.58 billion | $6.98 | 15.09 |
| PureCycle Technologies | $8.35 million | 98.40 | -$182.57 million | ($1.46) | -2.80 |
PPG Industries has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than PPG Industries, indicating that it is currently the more affordable of the two stocks.
Summary
PPG Industries beats PureCycle Technologies on 10 of the 14 factors compared between the two stocks.
About PPG Industries
PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. The Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage and personal care, promotional, and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.
About PureCycle Technologies
PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multiple applications, including packaging and labeling for consumer products, piping, ropes, cabling, and plastic parts for various industries. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.
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