Financial Analysis: American Environmental Partners (OTCMKTS:AEPT) versus Braskem (OTCMKTS:BRKMY)

Braskem (OTCMKTS:BRKMY) and American Environmental Partners (OTCMKTS:AEPT) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Braskem and American Environmental Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braskem	0	0	0	0	N/A
American Environmental Partners	0	0	0	0	N/A

Insider and Institutional Ownership

0.1% of Braskem shares are owned by institutional investors. Comparatively, 2.3% of American Environmental Partners shares are owned by institutional investors. 0.0% of Braskem shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Braskem and American Environmental Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braskem	$18.79 billion	0.13	$773.65 million	$1.23	5.15
American Environmental Partners	$23.81 million	0.04	-$15.06 million	($0.03)	-0.07

Braskem has higher revenue and earnings than American Environmental Partners. American Environmental Partners is trading at a lower price-to-earnings ratio than Braskem, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Braskem and American Environmental Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braskem	3.18%	26.96%	3.00%
American Environmental Partners	N/A	N/A	N/A

Volatility & Risk

Braskem has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, American Environmental Partners has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

Braskem beats American Environmental Partners on 9 of the 11 factors compared between the two stocks.

About Braskem

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through Chemicals, Polyolefins, Vinyls, United States and Europe, and Mexico segments. The Chemicals segment produces and sells ethylene, propylene butadiene, toluene, xylene, cumene, and benzene, as well as gasoline, diesel and liquefied petroleum gas, and other petroleum derivatives; and supplies electric energy, steam, compressed air, and other inputs to second-generation producers. The Polyolefins segment produces and sells polyethylene and polypropylene. The Vinyls segment produces and sells polyvinyl chloride, caustic soda, and chloride. The United States and Europe segment produces and sells polypropylene in the United States and Europe. The Mexico segment produces and sells polyethylene. The company also produces basic petrochemicals; imports and exports chemicals, petrochemicals, and fuels; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil. Braskem S.A. is a subsidiary of Odebrecht S.A.

About American Environmental Partners

American Environmental Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. It engages in the designing, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. The company also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services; educational marketing platforms of podcasts and videography; and construction, drilling, flowback, completions, and well-site services. The company was formerly known as American Energy Partners, Inc. and changed its name to American Environmental Partners, Inc. in October 2023. The company was incorporated in 1997 and is based in Canonsburg, Pennsylvania.