Contrasting Ecovyst (NYSE:ECVT) & Elementis (OTCMKTS:ELMTY)
by Sarita Garza · The Markets DailyEcovyst (NYSE:ECVT – Get Free Report) and Elementis (OTCMKTS:ELMTY – Get Free Report) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Volatility and Risk
Ecovyst has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Elementis has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.
Profitability
This table compares Ecovyst and Elementis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ecovyst | -7.71% | 11.58% | 4.76% |
| Elementis | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Ecovyst and Elementis, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ecovyst | 1 | 1 | 4 | 0 | 2.50 |
| Elementis | 0 | 0 | 0 | 0 | 0.00 |
Ecovyst currently has a consensus target price of $14.20, indicating a potential upside of 10.69%. Given Ecovyst’s stronger consensus rating and higher probable upside, analysts plainly believe Ecovyst is more favorable than Elementis.
Institutional & Insider Ownership
86.7% of Ecovyst shares are owned by institutional investors. 1.8% of Ecovyst shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Ecovyst and Elementis”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ecovyst | $723.50 million | 1.94 | -$71.13 million | ($0.55) | -23.33 |
| Elementis | $597.50 million | 1.79 | -$45.50 million | N/A | N/A |
Elementis has lower revenue, but higher earnings than Ecovyst.
Summary
Ecovyst beats Elementis on 10 of the 12 factors compared between the two stocks.
About Ecovyst
Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.
About Elementis
Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Performance Specialties and Personal Care. The Performance Specialties segment engages in the production of rheological modifiers and additives for decorative and industrial coatings; and production and supply of talc for use in plastics, coatings, technical ceramics, and paper sectors. The Personal Care segment provides rheological modifiers and compounded products, including active ingredients for antiperspirants (AP) deodorants for personal care manufacturers. The company offers personal care products for antiperspirants, color cosmetics, and skin care applications; and performance specialties products for architectural coatings, adhesives, sealants and construction additives, and talc applications. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.