Head to Head Analysis: Quest Resource (NASDAQ:QRHC) and Perma-Fix Environmental Services (NASDAQ:PESI)

Perma-Fix Environmental Services (NASDAQ:PESI) and Quest Resource (NASDAQ:QRHC) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

25.5% of Perma-Fix Environmental Services shares are held by institutional investors. Comparatively, 48.2% of Quest Resource shares are held by institutional investors. 8.4% of Perma-Fix Environmental Services shares are held by insiders. Comparatively, 19.6% of Quest Resource shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Perma-Fix Environmental Services and Quest Resource”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perma-Fix Environmental Services	$61.67 million	5.32	-$13.78 million	($1.13)	-13.69
Quest Resource	$250.22 million	0.11	-$15.38 million	($0.82)	-1.66

Perma-Fix Environmental Services has higher earnings, but lower revenue than Quest Resource. Perma-Fix Environmental Services is trading at a lower price-to-earnings ratio than Quest Resource, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Perma-Fix Environmental Services and Quest Resource, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perma-Fix Environmental Services	1	1	0	0	1.50
Quest Resource	1	1	0	0	1.50

Profitability

This table compares Perma-Fix Environmental Services and Quest Resource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perma-Fix Environmental Services	-37.04%	-35.46%	-20.22%
Quest Resource	-7.07%	-14.75%	-3.78%

Risk and Volatility

Perma-Fix Environmental Services has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Quest Resource has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Summary

Quest Resource beats Perma-Fix Environmental Services on 8 of the 11 factors compared between the two stocks.

About Perma-Fix Environmental Services

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. The company through Treatment and Services segments. The Treatment segment offers nuclear, low-level radioactive, mixed waste, hazardous and non-hazardous waste treatment, and processing and disposal services through treatment and storage facilities. This segment is also involved in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams. The Services segment provides technical services, including professional radiological measurement and site survey of government and commercial installations; health physics services; integrated occupational safety and health services; and consulting, engineering, project and waste management, environmental, decontamination and decommissioning (D&D) field, technical and management personnel and services; and waste management services. This segment also offers nuclear services, including D&D of government and commercial facilities, including engineering, technology applications, specialty services, logistics, transportation, processing, and disposal; and license termination support, such as project management, planning, characterization, waste stream identification and delineation, remediation/demolition, compliance demonstration, final status survey, reporting, transportation, disposal and emergency response. In addition, it maintains, services, maintains, calibrates, and sources health physics, IH and customized nuclear, environmental, and occupational safety and health instruments. The company provides its services to research institutions, commercial companies, public utilities, and governmental agencies through direct sales to customers or through intermediaries. Perma-Fix Environmental Services, Inc. was incorporated in 1990 and is headquartered in Atlanta, Georgia.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.