Financial Contrast: Montrose Environmental Group (NYSE:ONT) vs. Smart Powerr (NASDAQ:CREG)

Smart Powerr (NASDAQ:CREG) and Montrose Environmental Group (NYSE:ONT) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Smart Powerr has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Institutional and Insider Ownership

0.2% of Smart Powerr shares are owned by institutional investors. Comparatively, 87.9% of Montrose Environmental Group shares are owned by institutional investors. 15.4% of Smart Powerr shares are owned by company insiders. Comparatively, 10.4% of Montrose Environmental Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Smart Powerr and Montrose Environmental Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smart Powerr	-732.00%	-1.95%	-1.76%
Montrose Environmental Group	0.71%	5.61%	2.61%

Valuation and Earnings

This table compares Smart Powerr and Montrose Environmental Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smart Powerr	$260,000.00	218.62	-$2.90 million	($0.19)	-10.89
Montrose Environmental Group	$830.54 million	0.74	-$840,000.00	$0.05	338.80

Montrose Environmental Group has higher revenue and earnings than Smart Powerr. Smart Powerr is trading at a lower price-to-earnings ratio than Montrose Environmental Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Smart Powerr and Montrose Environmental Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smart Powerr	1	0	0	0	1.00
Montrose Environmental Group	1	2	2	0	2.20

Montrose Environmental Group has a consensus price target of $26.67, indicating a potential upside of 57.42%. Given Montrose Environmental Group’s stronger consensus rating and higher possible upside, analysts plainly believe Montrose Environmental Group is more favorable than Smart Powerr.

Summary

Montrose Environmental Group beats Smart Powerr on 11 of the 14 factors compared between the two stocks.

About Smart Powerr

Smart Powerr Corp. engages in the waste energy recycling business in China. The company provides energy saving and recovery facilities for various energy intensive industries; waste energy recycling systems for use in nonferrous metal plants; and clean-technology and energy-efficient solutions to reduce air pollution and energy shortage problems. It also designs, finances, constructs, and installs the waste energy recycling project to mid to large-size enterprises involved in high energy-consuming businesses; and provides project investment, investment management, economic information consulting, technical, financial leasing, and financial leasing transactions and consulting services; purchases, repairs, and disposes financial leasing assets; sells and leases energy saving systems and equipment. In addition, the company offers waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas to generate electricity; and flammable waste gases emitted from industrial production processes, such as blast furnace gas, and coke furnace gas, oil or gas to power gas-fired generators, as well as uses the waste heat generated in industrial production to make steam to generate electricity through a steam turbine. Further, it markets its projects to the industrial manufacturers to utilize energy recovery projects in their manufacturing processes, including steel, cement, nonferrous metal, coal, and petrochemical industries. The company was formerly known as China Recycling Energy Corporation and changed its name to Smart Powerr Corp. in March 2022. Smart Powerr Corp. was incorporated in 1980 and is headquartered in Xi'an, China.

About Montrose Environmental Group

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.