CECO Environmental (NASDAQ:CECE) and Perma-Pipe International (NASDAQ:PPIH) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

65.1% of CECO Environmental shares are held by institutional investors. Comparatively, 40.2% of Perma-Pipe International shares are held by institutional investors. 13.4% of CECO Environmental shares are held by company insiders. Comparatively, 9.9% of Perma-Pipe International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for CECO Environmental and Perma-Pipe International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CECO Environmental 0 1 1 0 2.50
Perma-Pipe International 0 0 0 0 N/A

CECO Environmental presently has a consensus target price of $9.00, suggesting a potential upside of 15.09%. Given CECO Environmental’s higher probable upside, equities analysts plainly believe CECO Environmental is more favorable than Perma-Pipe International.

Profitability

This table compares CECO Environmental and Perma-Pipe International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CECO Environmental -6.20% 2.76% 1.23%
Perma-Pipe International -5.32% -12.02% -6.14%

Risk and Volatility

CECO Environmental has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Perma-Pipe International has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

This table compares CECO Environmental and Perma-Pipe International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CECO Environmental $345.05 million 0.79 -$3.02 million $0.27 28.96
Perma-Pipe International $105.25 million 0.67 -$9.97 million N/A N/A

CECO Environmental has higher revenue and earnings than Perma-Pipe International.

Summary

CECO Environmental beats Perma-Pipe International on 10 of the 11 factors compared between the two stocks.

About CECO Environmental

CECO Environmental Corp. provides critical solutions to the environmental, energy, and fluid handling and filtration industries worldwide. The company operates through three segments: Energy, Environmental, and Fluid Handling and Filtration. The Energy segment offers gas turbine exhaust systems, dampers and diverters, gas and liquid separation and filtration equipment, selective catalytic reduction and selective non-catalytic reduction systems, acoustical components and silencers, secondary separators, and expansion joints for the power and petrochemical industries. The Environmental segment designs and manufactures cyclone systems; scrubbers; regenerative thermal and catalytic oxidizers; dust collectors and baghouses; standard and engineered industrial ducting products; fabric filters and cartridge collectors; ventilation and exhaust systems for emissions and contaminants; and process cooling systems for steel in rolling mills. This segment also provides component parts for industrial air systems; and alternatives to traditional duct components, as well as custom metal engineered fabrication services. The Fluid Handling and Filtration segment designs and manufactures centrifugal pumps for corrosive, abrasive, and high temperature liquids; filter products for air and liquid filtration; precious metal recovery systems; carbonate precipitators; and air movement and exhaust systems for use in the aquarium/aquaculture, plating and metal finishing, food and beverage, chemical/petrochemical, wastewater treatment, desalination, and pharmaceutical markets. The company markets its products and services to natural gas processors, refineries, power generators, boiler manufacturers, and compressor manufacturers; and transmission and distribution, metals and minerals, industrial manufacturing, engineering, and construction companies directly and through sales representatives. CECO Environmental Corp. was founded in 1966 and is headquartered in Dallas, Texas.

About Perma-Pipe International

Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping, and leak detection and location systems. It offers various piping systems, including industrial and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products; insulated and jacketed piping systems for district heating and cooling; and coating and/or insulation of oil and gas gathering flow and long lines for oil and mineral transportation. The company sells its products in the United States, the Middle East, Canada, India, and internationally. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was founded in 1989 and is headquartered in Niles, Illinois.

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