Head-To-Head Analysis: PureCycle Technologies (PCT) & The Competition

PureCycle Technologies (NASDAQ:PCT) is one of 295 public companies in the “Chemicals” industry, but how does it contrast to its peers? We will compare PureCycle Technologies to similar businesses based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, valuation and dividends.

Risk & Volatility

PureCycle Technologies has a beta of 2.63, suggesting that its share price is 163% more volatile than the S&P 500. Comparatively, PureCycle Technologies’ peers have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares PureCycle Technologies and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PureCycle Technologies	$13.76 million	-$182.57 million	-2.30
PureCycle Technologies Competitors	$6.41 billion	$222.31 million	-3.77

PureCycle Technologies’ peers have higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares PureCycle Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PureCycle Technologies	-1,618.84%	-612.39%	-22.08%
PureCycle Technologies Competitors	-61.52%	1.06%	-1.43%

Insider and Institutional Ownership

63.0% of PureCycle Technologies shares are held by institutional investors. Comparatively, 47.5% of shares of all “Chemicals” companies are held by institutional investors. 18.8% of PureCycle Technologies shares are held by company insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for PureCycle Technologies and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PureCycle Technologies	1	1	1	0	2.00
PureCycle Technologies Competitors	3234	12160	14086	515	2.40

PureCycle Technologies currently has a consensus price target of $11.75, indicating a potential upside of 249.70%. As a group, “Chemicals” companies have a potential upside of 7.04%. Given PureCycle Technologies’ higher possible upside, equities research analysts clearly believe PureCycle Technologies is more favorable than its peers.

Summary

PureCycle Technologies peers beat PureCycle Technologies on 8 of the 13 factors compared.

PureCycle Technologies Company Profile

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.