Fuel Tech (NASDAQ:FTEK) vs. Waste Connections (NYSE:WCN) Financial Contrast

Waste Connections (NYSE:WCN) and Fuel Tech (NASDAQ:FTEK) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Waste Connections and Fuel Tech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waste Connections	$9.47 billion	4.38	$1.08 billion	$4.15	39.72
Fuel Tech	$27.30 million	1.77	-$2.32 million	($0.11)	-14.09

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

Profitability

This table compares Waste Connections and Fuel Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waste Connections	10.86%	17.31%	6.62%
Fuel Tech	-12.75%	-8.88%	-7.62%

Risk and Volatility

Waste Connections has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Fuel Tech has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Waste Connections and Fuel Tech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waste Connections	0	4	14	2	2.90
Fuel Tech	2	0	0	0	1.00

Waste Connections presently has a consensus price target of $200.89, indicating a potential upside of 21.87%. Given Waste Connections’ stronger consensus rating and higher possible upside, analysts clearly believe Waste Connections is more favorable than Fuel Tech.

Insider and Institutional Ownership

86.1% of Waste Connections shares are held by institutional investors. Comparatively, 20.9% of Fuel Tech shares are held by institutional investors. 0.3% of Waste Connections shares are held by insiders. Comparatively, 9.8% of Fuel Tech shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Waste Connections beats Fuel Tech on 13 of the 15 factors compared between the two stocks.

About Waste Connections

Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.

About Fuel Tech

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. The company operates through Air Pollution Control Technology and FUEL CHEM Technology segments. The Air Pollution Control Technology segment offers technologies to reduce nitrogen oxide (NOx) emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources; NOxOUT and HERT selective non-catalytic reduction systems; selective catalytic reduction systems comprising ammonia injection grid, and graduated straightening grid systems; I-NOx systems; ESP Processes and Services; ULTRA technology; and flue gas conditioning systems. The FUEL CHEM Technology segment provides programs to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity, and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter, sulfur dioxide, and carbon dioxide through the addition of chemicals into the furnace using TIFI targeted in-furnace injection technology. This segment offers its FUEL CHEM program for plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, and university and district heating markets; and the owners of boilers, furnaces, and other combustion units. Fuel Tech, Inc. was incorporated in 1987 and is headquartered in Warrenville, Illinois.