Analyzing Perma-Fix Environmental Services (PESI) and Heritage-Crystal Clean (HCCI)

Perma-Fix Environmental Services (NASDAQ: PESI) and Heritage-Crystal Clean (NASDAQ:HCCI) are both small-cap industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent ratings for Perma-Fix Environmental Services and Heritage-Crystal Clean, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perma-Fix Environmental Services 0 0 0 0 N/A
Heritage-Crystal Clean 0 1 4 0 2.80

Heritage-Crystal Clean has a consensus price target of $20.40, indicating a potential upside of 11.48%. Given Heritage-Crystal Clean’s higher possible upside, analysts clearly believe Heritage-Crystal Clean is more favorable than Perma-Fix Environmental Services.

Insider and Institutional Ownership

26.2% of Perma-Fix Environmental Services shares are owned by institutional investors. Comparatively, 52.8% of Heritage-Crystal Clean shares are owned by institutional investors. 6.2% of Perma-Fix Environmental Services shares are owned by insiders. Comparatively, 14.8% of Heritage-Crystal Clean shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Perma-Fix Environmental Services and Heritage-Crystal Clean’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Perma-Fix Environmental Services $51.79 million 0.77 $2.12 million ($0.27) -12.59
Heritage-Crystal Clean $355.46 million 1.16 $41.31 million $0.76 24.08

Heritage-Crystal Clean has higher revenue and earnings than Perma-Fix Environmental Services. Perma-Fix Environmental Services is trading at a lower price-to-earnings ratio than Heritage-Crystal Clean, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Perma-Fix Environmental Services has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Heritage-Crystal Clean has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.

Profitability

This table compares Perma-Fix Environmental Services and Heritage-Crystal Clean’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perma-Fix Environmental Services -6.23% -8.74% -4.12%
Heritage-Crystal Clean 4.92% 7.69% 5.18%

Summary

Heritage-Crystal Clean beats Perma-Fix Environmental Services on 12 of the 12 factors compared between the two stocks.

About Perma-Fix Environmental Services

Perma-Fix Environmental Services, Inc. is an environmental and environmental technology know-how company. It operates in three segments: The Treatment Segment (Treatment), the Services Segment (Services) and the Medical Segment (Medical). Treatment includes nuclear, low-level radioactive, mixed (waste containing both hazardous and low-level radioactive waste), hazardous and non-hazardous waste treatment, processing and disposal services primarily through approximately four licensed and permitted treatment and storage facilities held by its subsidiaries. Services include on-site waste management services to commercial and government customers, technical services and nuclear services. The Medical segment includes research and development (R&D) of a new medical isotope production technology by its Polish subsidiary, Perma-Fix Medical S.A. (PF Medical). Its Treatment and Services provide services to research institutions, commercial companies, public utilities and governmental agencies.

About Heritage-Crystal Clean

Heritage-Crystal Clean, Inc. provides full-service parts cleaning, containerized waste management, used oil collection, vacuum truck services and antifreeze recycling. The Company owns and operates a used oil re-refinery. The Company operates through two segments: Environmental Services and Oil Business. The Company provides hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle maintenance sectors. The Environmental Services segment consists of the Company’s parts cleaning, containerized waste management, vacuum truck services, used antifreeze recycling activities and field services. The Oil Business segment consists of used oil collection activities, sale of recycled fuel oil, re-refining activities, and oil filter removal and disposal services. Through its re-refining process, the Company recycles used oil into lubricant base oil and by-products, and it is a supplier to firms that produce and market finished lubricants.

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