PureCycle Technologies (NASDAQ:PCT – Get Free Report) and Axalta Coating Systems (NYSE:AXTA – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Profitability
This table compares PureCycle Technologies and Axalta Coating Systems’ 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% |
| Axalta Coating Systems | 6.78% | 22.35% | 7.12% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for PureCycle Technologies and Axalta Coating Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PureCycle Technologies | 1 | 1 | 1 | 0 | 2.00 |
| Axalta Coating Systems | 0 | 9 | 5 | 0 | 2.36 |
Risk and Volatility
PureCycle Technologies has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Institutional & Insider Ownership
63.0% of PureCycle Technologies shares are held by institutional investors. Comparatively, 98.3% of Axalta Coating Systems shares are held by institutional investors. 18.8% of PureCycle Technologies shares are held by company insiders. Comparatively, 0.5% of Axalta Coating Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares PureCycle Technologies and Axalta Coating Systems”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PureCycle Technologies | $8.35 million | 136.90 | -$182.57 million | ($1.46) | -3.90 |
| Axalta Coating Systems | $5.12 billion | 1.36 | $378.00 million | $1.62 | 20.14 |
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 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.
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.
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