Fuel Tech (NASDAQ:FTEK – Get Free Report) and Acco Brands (NYSE:ACCO – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Institutional & Insider Ownership
20.9% of Fuel Tech shares are owned by institutional investors. Comparatively, 84.6% of Acco Brands shares are owned by institutional investors. 9.8% of Fuel Tech shares are owned by company insiders. Comparatively, 5.3% of Acco Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Fuel Tech has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Acco Brands has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
Earnings and Valuation
This table compares Fuel Tech and Acco Brands”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fuel Tech | $26.68 million | 1.59 | -$2.32 million | ($0.13) | -10.46 |
| Acco Brands | $1.52 billion | 0.32 | $41.30 million | $0.70 | 7.61 |
Acco Brands has higher revenue and earnings than Fuel Tech. Fuel Tech is trading at a lower price-to-earnings ratio than Acco Brands, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Fuel Tech and Acco Brands, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fuel Tech | 1 | 1 | 0 | 0 | 1.50 |
| Acco Brands | 0 | 1 | 1 | 1 | 3.00 |
Acco Brands has a consensus target price of $6.00, suggesting a potential upside of 12.68%. Given Acco Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Acco Brands is more favorable than Fuel Tech.
Profitability
This table compares Fuel Tech and Acco Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fuel Tech | -14.22% | -10.59% | -9.11% |
| Acco Brands | 4.23% | 13.48% | 4.03% |
Summary
Acco Brands beats Fuel Tech on 12 of the 15 factors compared between the two stocks.
About Fuel Tech
Fuel Tech, Inc. is a technology company that develops and commercializes solutions for air pollution control, combustion optimization, and fuel treatment. Its products and services are designed primarily for utility, industrial, and other large combustion facilities seeking to improve operating performance and reduce emissions. The company’s air pollution control technologies focus on reducing nitrogen oxide emissions from boilers, furnaces, and other combustion equipment. Its offerings include selective and non-selective catalytic reduction systems, related reagent-injection technologies, engineering services, and software and controls used to monitor and optimize emissions-control processes.
About Acco Brands
ACCO Brands Corporation designs, markets and manufactures branded products for work, school and home. Its offerings include traditional office and school supplies, binding and presentation equipment, and computer and gaming accessories. The company’s portfolio includes brands such as Five Star, Mead, Swingline, Kensington, Leitz, Esselte and PowerA. Products are sold through retailers, online channels and other distributors to consumers, businesses and educational institutions. ACCO Brands was formed in 2005 through the combination of ACCO World and General Binding Corporation.
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