Arq, Inc. (ARQ) vs CECO Environmental Corp. (CECO)

Arq, Inc. and CECO Environmental Corp. are both Pollution & Treatment Controls companies. CECO Environmental Corp. is the larger, with a market value of $4.1B against $87.8M — 46.7× the size. CECO Environmental Corp. grew revenue faster over the last twelve months: 37.6% against 4.93%. CECO Environmental Corp. has the higher net margin (−3.39% vs −42.1%) and the higher return on invested capital (−0.12% vs −16.7%). Across the 20 metrics below, CECO Environmental Corp. leads on 14 and Arq, Inc. on 6.

Valuation

Metric ARQ CECO Pollution & Treatment Controls median
P/E n/m n/m —
P/S 0.69 3.52 3.64
P/B 0.51 1.53 2.08
Price to free cash flow n/m n/m —
EV/EBITDA 21.73 126.99 17.68
EV/Sales 0.93 4.26 4.26
Earnings yield (62.16%) (0.93%) (18.01%)
Free cash flow yield (11.06%) (0.32%) (5.86%)

Profitability

Metric ARQ CECO Pollution & Treatment Controls median
Gross margin 28.80% 32.15% 34.73%
Operating margin (42.84%) (0.60%) (29.01%)
Net margin (42.14%) (3.39%) (31.94%)
Free cash flow margin (0.09%) (1.13%) (12.20%)
Return on equity (27.02%) (2.57%) (38.24%)
Return on assets (20.10%) (1.33%) (26.06%)
Return on invested capital (16.69%) (0.12%) 0.00%

Growth

Metric ARQ CECO Pollution & Treatment Controls median
Revenue growth (TTM) 4.93% 37.64% 9.79%
EPS growth (last fiscal year) (807.14%) 280.56% —
Revenue growth, 5-year CAGR 12.30% 19.63% 8.56%
Net income growth, 5-year CAGR 0.00% 43.55% 0.00%

Health

Metric ARQ CECO Pollution & Treatment Controls median
Debt to equity 0.18 0.35 0.03
Current ratio 1.03 1.50 1.90
Net debt to EBITDA 5.61 1.36 0.30

Dividend

Metric ARQ CECO Pollution & Treatment Controls median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric ARQ CECO Pollution & Treatment Controls median
Market cap 87.77m 4.10b 48.08m

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