PureCycle Technologies (PCT) versus Its Competitors Critical Analysis

PureCycle Technologies (NASDAQ:PCT) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it weigh in compared to its rivals? We will compare PureCycle Technologies to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Profitability

This table compares PureCycle Technologies and its rivals’ 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%
PureCycle Technologies Competitors	-61.58%	1.07%	-1.45%

Insider & Institutional Ownership

63.0% of PureCycle Technologies shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Chemicals” companies are owned by institutional investors. 18.8% of PureCycle Technologies shares are owned by insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

PureCycle Technologies has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, PureCycle Technologies’ rivals have a beta of 0.94, suggesting that their average share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for PureCycle Technologies and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PureCycle Technologies	1	1	1	0	2.00
PureCycle Technologies Competitors	3239	12196	14110	516	2.40

PureCycle Technologies presently has a consensus price target of $11.75, indicating a potential upside of 321.15%. As a group, “Chemicals” companies have a potential upside of 4.97%. Given PureCycle Technologies’ higher possible upside, equities research analysts clearly believe PureCycle Technologies is more favorable than its rivals.

Valuation & Earnings

This table compares PureCycle Technologies and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PureCycle Technologies	$8.35 million	-$182.57 million	-1.91
PureCycle Technologies Competitors	$6.42 billion	$222.31 million	-3.57

PureCycle Technologies’ rivals have higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

PureCycle Technologies rivals beat PureCycle Technologies on 8 of the 13 factors compared.

PureCycle Technologies Company Profile

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.