Financial Review: GlyEco (OTCMKTS:GLYE) and ARQ (NASDAQ:ARQ)

ARQ (NASDAQ:ARQ) and GlyEco (OTCMKTS:GLYE) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares ARQ and GlyEco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARQ	-0.44%	-0.25%	-0.19%
GlyEco	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for ARQ and GlyEco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARQ	0	0	2	0	3.00
GlyEco	0	0	0	0	0.00

ARQ presently has a consensus target price of $9.50, suggesting a potential upside of 60.74%. Given ARQ’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ARQ is more favorable than GlyEco.

Insider & Institutional Ownership

18.5% of ARQ shares are held by institutional investors. 26.9% of ARQ shares are held by insiders. Comparatively, 22.1% of GlyEco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares ARQ and GlyEco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARQ	$99.18 million	2.50	-$12.25 million	($0.01)	-591.00
GlyEco	N/A	N/A	N/A	N/A	N/A

GlyEco has lower revenue, but higher earnings than ARQ.

Summary

ARQ beats GlyEco on 6 of the 9 factors compared between the two stocks.

About ARQ

Arq, Inc. is a holding company. It engages in the provision of environmental and emission control equipment to the power generation industry. The company operates through the following Segments: Refined Coal and Advanced Purification Technologies. The Refined Coal segment includes the Tinuum Group, Tinuum Services, and GWN Manager. The Advanced Purification Technologies segment refers to the sale of Activated Carbon Injection and Dry Sorbent Injection equipment systems, chemical sales, consulting services, and other sales related to the reduction of emissions in the coal-fired electric generation process and the electric utility industry. The company was founded in 1996 and is headquartered in Greenwood Village, CO.

About GlyEco

GlyEco, Inc. engages in the development and manufacture of coolants, additives and related performance fluids. Its products and services include additives, ethylene glycol and antifreeze. The company was founded by Janet Carnell Lorenz, John Darc Lorenz, II and Todd L. Smith on April 21, 1997 and is headquartered in Rock Hill, SC.