Sharps Compliance Corp (NASDAQ: SMED) and Heritage-Crystal Clean (NASDAQ:HCCI) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Profitability

This table compares Sharps Compliance Corp and Heritage-Crystal Clean’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sharps Compliance Corp -3.39% -2.37% -1.67%
Heritage-Crystal Clean 4.92% 7.69% 5.18%

Institutional and Insider Ownership

25.9% of Sharps Compliance Corp shares are owned by institutional investors. Comparatively, 52.8% of Heritage-Crystal Clean shares are owned by institutional investors. 20.3% of Sharps Compliance Corp shares are owned by company insiders. Comparatively, 14.8% of Heritage-Crystal Clean shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sharps Compliance Corp and Heritage-Crystal Clean’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sharps Compliance Corp $38.19 million 2.38 $279,666.00 ($0.07) -80.99
Heritage-Crystal Clean $355.46 million 1.16 $41.31 million $0.76 23.95

Heritage-Crystal Clean has higher revenue and earnings than Sharps Compliance Corp. Sharps Compliance Corp is trading at a lower price-to-earnings ratio than Heritage-Crystal Clean, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Sharps Compliance Corp and Heritage-Crystal Clean, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sharps Compliance Corp 0 0 2 0 3.00
Heritage-Crystal Clean 0 1 4 0 2.80

Sharps Compliance Corp presently has a consensus target price of $7.50, suggesting a potential upside of 32.28%. Heritage-Crystal Clean has a consensus target price of $20.40, suggesting a potential upside of 12.09%. Given Sharps Compliance Corp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sharps Compliance Corp is more favorable than Heritage-Crystal Clean.

Risk & Volatility

Sharps Compliance Corp has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Heritage-Crystal Clean has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.

Summary

Heritage-Crystal Clean beats Sharps Compliance Corp on 9 of the 13 factors compared between the two stocks.

About Sharps Compliance Corp

Sharps Compliance Corp. is a provider of waste management services, including medical, pharmaceutical and hazardous. The Company’s solutions include Sharps Recovery System, TakeAway Medication Recovery System, MedSafe, Route-Based Pickup Service, TakeAway Recycle System, ComplianceTRAC, Universal Waste Shipback Systems and Other Solutions. The Company’s solutions facilitate the collection, containment, transportation and treatment of various types of healthcare-related materials, including hypodermic needles, lancets and other devices or objects used to puncture or lacerate the skin, or sharps, hazardous waste and unused consumer dispensed medications and over-the-counter drugs. It assists its customers in determining which of its solution offerings fit for the collection, containment, return transportation and treatment of medical waste, used healthcare materials, pharmaceutical waste, hazardous waste and unused dispensed medications. It provides tracking and reporting tools.

About Heritage-Crystal Clean

Heritage-Crystal Clean, Inc. provides full-service parts cleaning, containerized waste management, used oil collection, vacuum truck services and antifreeze recycling. The Company owns and operates a used oil re-refinery. The Company operates through two segments: Environmental Services and Oil Business. The Company provides hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle maintenance sectors. The Environmental Services segment consists of the Company’s parts cleaning, containerized waste management, vacuum truck services, used antifreeze recycling activities and field services. The Oil Business segment consists of used oil collection activities, sale of recycled fuel oil, re-refining activities, and oil filter removal and disposal services. Through its re-refining process, the Company recycles used oil into lubricant base oil and by-products, and it is a supplier to firms that produce and market finished lubricants.

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