Contrasting Liquidmetal Technologies (OTCMKTS:LQMT) and ESAB (NYSE:ESAB)

ESAB (NYSE:ESAB) and Liquidmetal Technologies (OTCMKTS:LQMT) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

91.1% of ESAB shares are owned by institutional investors. Comparatively, 0.1% of Liquidmetal Technologies shares are owned by institutional investors. 7.3% of ESAB shares are owned by insiders. Comparatively, 45.4% of Liquidmetal Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ESAB and Liquidmetal Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESAB	0	2	8	0	2.80
Liquidmetal Technologies	0	0	0	0	0.00

ESAB currently has a consensus target price of $143.33, indicating a potential upside of 28.53%. Given ESAB’s stronger consensus rating and higher probable upside, analysts clearly believe ESAB is more favorable than Liquidmetal Technologies.

Profitability

This table compares ESAB and Liquidmetal Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESAB	8.70%	15.93%	7.29%
Liquidmetal Technologies	-199.61%	-7.00%	-6.70%

Volatility and Risk

ESAB has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Liquidmetal Technologies has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Earnings and Valuation

This table compares ESAB and Liquidmetal Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESAB	$2.74 billion	2.47	$264.84 million	$3.97	28.09
Liquidmetal Technologies	$860,000.00	151.57	-$1.51 million	N/A	N/A

ESAB has higher revenue and earnings than Liquidmetal Technologies.

Summary

ESAB beats Liquidmetal Technologies on 10 of the 12 factors compared between the two stocks.

About ESAB

ESAB Corporation engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, automated welding, and gas control equipment. Its comprehensive range of welding consumables includes electrodes, cored and solid wires, and fluxes using a range of specialty and other materials; and cutting consumables comprising electrodes, nozzles, shields, and tips. The company's equipment ranges from portable welding machines to large customized automated cutting and welding systems. It also offers a range of software and digital solutions to help its customers increase their productivity, remotely monitor their welding operations, and digitize their documentation. The company sells its products under the ESAB brand to various end markets, such as general industry, infrastructure, renewable energy, medical and life sciences, transportation, construction, and energy. It offers its products through independent distributors and direct salespeople. The company operates in North America, South America, Europe, the Middle East, India, Africa, and the Asia Pacific. ESAB Corporation was founded in 1904 and is headquartered in North Bethesda, Maryland.

About Liquidmetal Technologies

Liquidmetal Technologies, Inc., a materials technology company, designs, develops, and sells custom products and parts from bulk amorphous alloys to various industries in the United States and internationally. The company provides bulk amorphous alloy custom products and parts for applications, which include non-consumer electronic devices, medical products, automotive components, and sports and leisure goods. It offers tooling and prototype parts, such as demonstration parts and test samples for customers with products in development; and engages in product licensing activities. In addition, the company partners with third-party manufacturers and licensees to develop and commercialize liquid metal alloy products. The company was incorporated in 1987 and is based in Lake Forest, California.