Stepan (NYSE:SCL – Get Free Report) and PureCycle Technologies (NASDAQ:PCT – Get Free Report) are both small-cap materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Profitability
This table compares Stepan and PureCycle Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stepan | -0.11% | 3.90% | 2.01% |
| PureCycle Technologies | -1,618.84% | -612.39% | -22.08% |
Risk and Volatility
Stepan has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500.
Insider & Institutional Ownership
Earnings & Valuation
This table compares Stepan and PureCycle Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stepan | $2.43 billion | 0.58 | $46.90 million | ($0.12) | -520.57 |
| PureCycle Technologies | $8.35 million | 96.48 | -$182.57 million | ($1.46) | -2.75 |
Stepan has higher revenue and earnings than PureCycle Technologies. Stepan is trading at a lower price-to-earnings ratio than PureCycle Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Stepan and PureCycle Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stepan | 1 | 0 | 0 | 1 | 2.50 |
| PureCycle Technologies | 1 | 1 | 1 | 0 | 2.00 |
PureCycle Technologies has a consensus price target of $11.75, indicating a potential upside of 193.02%. Given PureCycle Technologies’ higher probable upside, analysts plainly believe PureCycle Technologies is more favorable than Stepan.
Summary
Stepan beats PureCycle Technologies on 9 of the 15 factors compared between the two stocks.
About Stepan
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients. Its surfactants are also used in various applications, including emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins, including liquid and powdered products, which are used in CASE applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.
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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