Euro Tech (NASDAQ:CLWT) vs. Tetra Tech (NASDAQ:TTEK) Critical Review

Tetra Tech (NASDAQ:TTEK) and Euro Tech (NASDAQ:CLWT) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Tetra Tech has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Euro Tech has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Tetra Tech and Euro Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Tech	0	3	4	0	2.57
Euro Tech	1	0	0	0	1.00

Tetra Tech presently has a consensus target price of $42.20, suggesting a potential upside of 22.18%. Given Tetra Tech’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Tetra Tech is more favorable than Euro Tech.

Insider & Institutional Ownership

93.9% of Tetra Tech shares are owned by institutional investors. Comparatively, 2.9% of Euro Tech shares are owned by institutional investors. 0.4% of Tetra Tech shares are owned by company insiders. Comparatively, 79.0% of Euro Tech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Tetra Tech and Euro Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tetra Tech	4.55%	25.79%	10.30%
Euro Tech	N/A	N/A	N/A

Valuation and Earnings

This table compares Tetra Tech and Euro Tech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Tech	$5.44 billion	1.66	$247.72 million	$0.93	37.14
Euro Tech	$15.38 million	0.60	$730,000.00	N/A	N/A

Tetra Tech has higher revenue and earnings than Euro Tech.

Summary

Tetra Tech beats Euro Tech on 11 of the 12 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 Euro Tech

Euro Tech Holdings Company Limited primarily distributes water treatment equipment, laboratory instruments, analyzers, test kits and related supplies, and power generation equipment to commercial customers, and governmental agencies in Hong Kong and the People's Republic of China. The company operates in two segments, Trading and Manufacturing, and Engineering. It sells analytical instruments, such as spectrophotometers, colorimeters, chromatographs, mass spectrometers, flow injector analyzers, automated sample preparation workstations, and atomic spectrometers; environmental monitoring instruments comprising air and water quality monitoring instruments; sample pre-treatment equipment; and general-purpose laboratory instruments consisting of water quality monitoring and analysis equipment. The company also distributes general testing and measuring equipment comprising multi-channel digital and analogue recorders, signal amplifiers, and calibration equipment for energy conservation, renewable energy equipment, power quality analyzers, and continuous emissions monitoring systems; and air pollution control systems to power plants, railway and aero-space industries, utilities, educational institutions, and telecommunications companies. In addition, it offers process control systems, including sensors, temperature and pressure gauges, power and energy consumption meters, flow meters, valves, temperature and pressure transmitters and control devices, and temperature and pressure calibrators, as well as moisture, power, energy, and harmonic analyzers; systems engineering services; and maintenance, installation assistance, and calibration services. Further, the company distributes programmable logic controllers, telemetry units, and supervisory control and data acquisition systems and software. Euro Tech Holdings Company Limited was founded in 1971 and is headquartered in Hong Kong, Hong Kong.