Reviewing ESS Tech (NYSE:GWH) & Environmental Tectonics (OTCMKTS:ETCC)

ESS Tech (NYSE:GWH) and Environmental Tectonics (OTCMKTS:ETCC) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares ESS Tech and Environmental Tectonics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESS Tech	-1,028.89%	-71.44%	-53.77%
Environmental Tectonics	-6.72%	N/A	-6.57%

Institutional & Insider Ownership

46.8% of ESS Tech shares are owned by institutional investors. 6.9% of ESS Tech shares are owned by insiders. Comparatively, 74.8% of Environmental Tectonics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

ESS Tech has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Environmental Tectonics has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Earnings and Valuation

This table compares ESS Tech and Environmental Tectonics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESS Tech	$7.54 million	15.63	-$77.58 million	($0.49)	-1.38
Environmental Tectonics	$26.34 million	N/A	-$1.56 million	($0.20)	-4.00

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

Analyst Recommendations

This is a summary of recent ratings and price targets for ESS Tech and Environmental Tectonics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESS Tech	0	2	1	0	2.33
Environmental Tectonics	0	0	0	0	N/A

ESS Tech presently has a consensus price target of $2.14, indicating a potential upside of 217.23%. Given ESS Tech’s higher possible upside, research analysts clearly believe ESS Tech is more favorable than Environmental Tectonics.

Summary

Environmental Tectonics beats ESS Tech on 7 of the 11 factors compared between the two stocks.

About ESS Tech

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.