Critical Analysis: Ecosphere Technologies (OTCMKTS:ESPHQ) vs. Tetra Tech (NASDAQ:TTEK)

Tetra Tech (NASDAQ:TTEK) and Ecosphere Technologies (OTCMKTS:ESPHQ) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Valuation and Earnings

This table compares Tetra Tech and Ecosphere Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Tech	$5.20 billion	1.72	$333.38 million	$0.80	42.48
Ecosphere Technologies	N/A	N/A	N/A	N/A	N/A

Tetra Tech has higher revenue and earnings than Ecosphere Technologies.

Profitability

This table compares Tetra Tech and Ecosphere Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tetra Tech	3.94%	24.70%	9.99%
Ecosphere Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Tetra Tech and Ecosphere Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Tech	0	4	3	0	2.43
Ecosphere Technologies	0	0	0	0	0.00

Tetra Tech presently has a consensus price target of $41.00, indicating a potential upside of 20.66%. Given Tetra Tech’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Tetra Tech is more favorable than Ecosphere Technologies.

Institutional and Insider Ownership

93.9% of Tetra Tech shares are owned by institutional investors. 0.4% of Tetra Tech shares are owned by company insiders. Comparatively, 18.4% of Ecosphere Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Tetra Tech beats Ecosphere Technologies on 8 of the 9 factors compared between the two stocks.

About Tetra Tech

Tetra Tech, Inc. provides consulting and engineering services in the United States and internationally. The company operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services. This segment serves federal, state, and local governments; and development agencies in water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and a range of civil infrastructure master planning and engineering design markets. The CIG segment provides early data collection and monitoring, data analysis and information management, feasibility studies and assessments, science and engineering applied research, engineering design, project management, and operations and maintenance services; and environmental remediation and reconstruction services, and industrial water treatment services. This segment serves natural resources, energy, and utilities markets, as well as sustainable infrastructure master planning and engineering design for facilities, transportation, and local development projects. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California.

About Ecosphere Technologies

Ecosphere Technologies, Inc., a technology development and intellectual property licensing company, develops environmental solutions for the water, agriculture, energy, and industrial markets worldwide. The company offers Ozonix water treatment technology, an advanced oxidation process that is designed to treat and recycle industrial wastewater without the use of toxic chemicals. Its Ozonix water treatment technology is used in oil and natural gas, mining, agriculture, energy, food and beverage, industrial, and marine, as well as for municipal wastewater treatment applications. The company also provides Ecos PowerCube, a mobile and solar powered generator, which increases the total amount of solar power generation that is used in various markets, including off-grid agricultural, military, emergency/disaster relief, and humanitarian and wireless communication efforts for remote applications. In addition, it offers Ecos GrowCube, a fully-automated hydroponic growing system, which increases the crop production. Ecosphere Technologies, Inc. was founded in 1998 and is headquartered in Stuart, Florida. On December 5, 2019, the voluntary petition of Ecosphere Technologies, Inc. for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on December 21, 2018.