Axalta Coating Systems (NYSE:AXTA – Get Free Report) and PureCycle Technologies (NASDAQ:PCT – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares Axalta Coating Systems and PureCycle Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axalta Coating Systems | 6.78% | 22.35% | 7.12% |
| PureCycle Technologies | -1,618.84% | -612.39% | -22.08% |
Volatility and Risk
Axalta Coating Systems has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 2.57, indicating that its share price is 157% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axalta Coating Systems | 0 | 9 | 5 | 0 | 2.36 |
| PureCycle Technologies | 1 | 1 | 1 | 0 | 2.00 |
Axalta Coating Systems currently has a consensus price target of $36.85, indicating a potential upside of 14.29%. PureCycle Technologies has a consensus price target of $11.75, indicating a potential upside of 105.42%. Given PureCycle Technologies’ higher possible upside, analysts plainly believe PureCycle Technologies is more favorable than Axalta Coating Systems.
Insider and Institutional Ownership
98.3% of Axalta Coating Systems shares are owned by institutional investors. Comparatively, 63.0% of PureCycle Technologies shares are owned by institutional investors. 0.5% of Axalta Coating Systems shares are owned by insiders. Comparatively, 18.8% of PureCycle Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Axalta Coating Systems and PureCycle Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axalta Coating Systems | $5.12 billion | 1.35 | $378.00 million | $1.62 | 19.90 |
| PureCycle Technologies | $8.35 million | 137.62 | -$182.57 million | ($1.46) | -3.92 |
Axalta Coating Systems has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Axalta Coating Systems beats PureCycle Technologies on 10 of the 14 factors compared between the two stocks.
About Axalta Coating Systems
Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.
About PureCycle Technologies
PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multiple applications, including packaging and labeling for consumer products, piping, ropes, cabling, and plastic parts for various industries. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.
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