Zentek (NASDAQ:ZTEK) versus ARQ (NASDAQ:ARQ) Financial Analysis

ARQ (NASDAQ:ARQ) and Zentek (NASDAQ:ZTEK) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility & Risk

ARQ has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Zentek has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares ARQ and Zentek’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARQ	$99.18 million	2.73	-$12.25 million	($0.50)	-16.18
Zentek	$50,000.00	2,157.55	-$10.90 million	($0.07)	-15.28

Zentek has lower revenue, but higher earnings than ARQ. ARQ is trading at a lower price-to-earnings ratio than Zentek, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

18.5% of ARQ shares are owned by institutional investors. Comparatively, 0.8% of Zentek shares are owned by institutional investors. 22.2% of ARQ shares are owned by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations for ARQ and Zentek, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARQ	0	0	0	0	N/A
Zentek	0	0	0	0	N/A

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ARQ	-12.35%	-8.35%	-6.16%
Zentek	N/A	-44.98%	-40.90%

Summary

ARQ beats Zentek on 6 of the 10 factors compared between the two stocks.

About ARQ

Arq, Inc. produces activated carbon products in North America. The company's products include granular activated carbon, powdered and granular activated carbon, and colloidal carbon products; Arq Powder Wetcake, a fine and low-ash coal waste-derived particle; and additives for air emissions control. Its products are used in various applications, including water treatment, ground water remediation, soil sediments, air emissions, and asphalt additives. The company was formerly known as Advanced Emissions Solutions, Inc. and changed its name to Arq, Inc. in February 2024. Arq, Inc. was founded in 1997 and is headquartered in Greenwood Village, Colorado.

About Zentek

Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compound. In addition, it develops graphene oxide synthesis and graphene synthesis. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Guelph, Canada.