Investors are evaluating the potential of two small-cap companies, Select Water Solutions (NYSE:WTTR) and TOMI Environmental Solutions (NASDAQ:TOMZ), as they seek to determine which stock offers superior value. This article compares the two firms based on earnings strength, analyst recommendations, valuation, risk profiles, dividends, institutional ownership, and profitability metrics.
Valuation and Earnings Analysis
Recent financial data reveals significant differences between Select Water Solutions and TOMI Environmental Solutions. A comparison of gross revenue and earnings per share (EPS) is crucial for understanding their financial health and market position.
Currently, Select Water Solutions has a consensus price target of $14.00, indicating a potential upside of approximately 33.23%. In contrast, TOMI Environmental Solutions boasts a much higher consensus price target of $3.50, with a remarkable potential upside of 354.49%. These figures suggest a more favorable outlook for TOMI Environmental Solutions among analysts.
Risk and Volatility Assessment
Risk assessment is another critical factor for investors. Select Water Solutions has a beta of 0.97, which implies that its share price is 3% less volatile than the S&P 500 index. Conversely, TOMI Environmental Solutions presents a higher beta of 1.54, indicating that its stock is 54% more volatile than the broader market. Investors must weigh these risk factors when considering their investment strategy.
Profitability metrics further differentiate the two companies. Select Water Solutions demonstrates stronger net margins, return on equity, and return on assets compared to TOMI Environmental Solutions.
Ownership and Market Sentiment
Institutional ownership can provide insights into market confidence. Approximately 81.7% of Select Water Solutions shares are held by institutional investors, a clear signal of confidence in its long-term growth potential. In comparison, only 4.8% of TOMI Environmental Solutions shares are owned by institutions. Nonetheless, TOMI Environmental Solutions has a higher insider ownership at 23.5%, compared to 8.4% for Select Water Solutions. This suggests that insiders at TOMI may have a strong belief in the company’s future.
Company Profiles
Select Water Solutions, headquartered in Houston, Texas, specializes in providing water management and chemical solutions to the energy sector in the United States. The company operates through three primary segments: Water Services, Water Infrastructure, and Chemical Technologies. Its services include water sourcing, transfer, containment, and monitoring, as well as various technology solutions related to water management.
The firm, which rebranded from Select Energy Services, Inc. to Select Water Solutions, Inc. in May 2023, was established in 2016 and focuses on delivering comprehensive services to oil and gas producers.
On the other hand, TOMI Environmental Solutions, based in Frederick, Maryland, operates in the field of bacteria decontamination and infectious disease control. Established in 1979, the company provides innovative environmental solutions for disinfecting indoor air and surfaces. Its products, including the SteraMist systems, serve a wide array of industries, from hospitals to schools and food processing facilities.
Investors must consider both companies’ strengths and weaknesses as they make decisions based on the current market landscape. While Select Water Solutions outperforms TOMI Environmental Solutions in several key metrics, the latter’s substantial potential upside could appeal to investors seeking high-risk, high-reward opportunities.
