Sancon Resources Recovery (OTCMKTS:IGSC) versus Euro Tech (NASDAQ:CLWT) Critical Analysis

Euro Tech (NASDAQ:CLWT) and Sancon Resources Recovery (OTCMKTS:IGSC) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of current ratings for Euro Tech and Sancon Resources Recovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euro Tech	1	0	0	0	1.00
Sancon Resources Recovery	0	0	0	0	0.00

Earnings and Valuation

This table compares Euro Tech and Sancon Resources Recovery”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Euro Tech	$15.38 million	0.61	$730,000.00	N/A	N/A
Sancon Resources Recovery	$1.74 million	1.98	$200,000.00	N/A	N/A

Euro Tech has higher revenue and earnings than Sancon Resources Recovery.

Insider and Institutional Ownership

2.9% of Euro Tech shares are owned by institutional investors. 79.0% of Euro Tech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Euro Tech and Sancon Resources Recovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euro Tech	N/A	N/A	N/A
Sancon Resources Recovery	13.08%	8.90%	5.81%

Volatility and Risk

Euro Tech has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Sancon Resources Recovery has a beta of -6.13, meaning that its share price is 713% less volatile than the S&P 500.

Summary

Euro Tech beats Sancon Resources Recovery on 6 of the 10 factors compared between the two stocks.

About Euro Tech

Euro Tech Holdings Company Limited primarily distributes water treatment equipment, laboratory instruments, analyzers, test kits and related supplies, and power generation equipment to commercial customers, and governmental agencies in Hong Kong and the People's Republic of China. The company operates in two segments, Trading and Manufacturing, and Engineering. It sells analytical instruments, such as spectrophotometers, colorimeters, chromatographs, mass spectrometers, flow injector analyzers, automated sample preparation workstations, and atomic spectrometers; environmental monitoring instruments comprising air and water quality monitoring instruments; sample pre-treatment equipment; and general-purpose laboratory instruments consisting of water quality monitoring and analysis equipment. The company also distributes general testing and measuring equipment comprising multi-channel digital and analogue recorders, signal amplifiers, and calibration equipment for energy conservation, renewable energy equipment, power quality analyzers, and continuous emissions monitoring systems; and air pollution control systems to power plants, railway and aero-space industries, utilities, educational institutions, and telecommunications companies. In addition, it offers process control systems, including sensors, temperature and pressure gauges, power and energy consumption meters, flow meters, valves, temperature and pressure transmitters and control devices, and temperature and pressure calibrators, as well as moisture, power, energy, and harmonic analyzers; systems engineering services; and maintenance, installation assistance, and calibration services. Further, the company distributes programmable logic controllers, telemetry units, and supervisory control and data acquisition systems and software. Euro Tech Holdings Company Limited was founded in 1971 and is headquartered in Hong Kong, Hong Kong.

About Sancon Resources Recovery

IGS Capital Group Limited, through its subsidiary, IGS Mart SDN BHD, operates a convenient store in Malaysia. It operates its store under the Like Mart name. The company was formerly known as Sancon Resources Recovery, Inc. and changed its name to IGS Capital Group Limited in June 2017. The company was incorporated in 2003 and is based in Petaling Jaya, Malaysia. IGS Capital Group Limited is a subsidiary of Pontoon Boat Inc.