PureCycle Technologies (NASDAQ:PCT) versus Cereplast (OTCMKTS:CERPQ) Critical Contrast

Cereplast (OTCMKTS:CERPQ) and PureCycle Technologies (NASDAQ:PCT) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares Cereplast and PureCycle Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cereplast	N/A	N/A	N/A	N/A	N/A
PureCycle Technologies	N/A	N/A	-$101.71 million	($1.50)	-7.03

Volatility and Risk

Cereplast has a beta of 3.04, meaning that its share price is 204% more volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Cereplast and PureCycle Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cereplast	N/A	N/A	N/A
PureCycle Technologies	N/A	-52.63%	-20.69%

Analyst Recommendations

This is a breakdown of current ratings for Cereplast and PureCycle Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cereplast	0	0	0	0	0.00
PureCycle Technologies	0	1	3	0	2.75

PureCycle Technologies has a consensus target price of $12.50, indicating a potential upside of 18.48%. Given PureCycle Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe PureCycle Technologies is more favorable than Cereplast.

Institutional & Insider Ownership

63.0% of PureCycle Technologies shares are held by institutional investors. 1.1% of Cereplast shares are held by company insiders. Comparatively, 11.4% of PureCycle Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

PureCycle Technologies beats Cereplast on 5 of the 8 factors compared between the two stocks.

About Cereplast

Cereplast, Inc. does not have significant operation. Previously, it was involved in the development and are commercialization of bio-based resins. The company was incorporated in 2001 and is based in Zhengzhou, China.

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.